According to the GDP data as reported by the European Union statistics agency, or Eurostat, the expansion of Euro zone GDP increased by only 0.2% as compared to the growth in the last three months in 2009. On the other hand, when this new data was compared to the first quarter of 2009, the increase was 0.6%.

The main reason why this data is acquired and is predicted rightfully so, is attributed mostly to the fact that the demands in the domestic scene are still very restrained. Another indication of this slow and sluggish growth is the drifting of the euro against the US dollar; only a 0.1 % increase in the most recent data.

Another factor which may have contributed to this sluggish growth is that consumption for private sales has reduced 0.1 % for the previous quarter. For example, automotive sales contributed for much of the hindrance in sales as the scrapping programs directed towards older vehicles were expired.

What’s worse is that there isn’t much expectation for the second quarter as well. As the government looks forward to starting fiscal consolidation, consumer confidence is starting to take a hit. However, there is good news in the form of strong imports which involve goods that will boost the process of production.