BRUSSELS, (Reuters) – The first quarter of this year saw a faster growth rate than the three previous months, despite the effects of war in Ukraine. This was according to the European Union statistics office, which revises its estimates significantly higher.

Also, the Euro zone’s employment growth was revised up. It showed an even greater acceleration during the January-March quarter compared to the preceding quarter.

Eurostat’s final reading of January-March reported that the Gross Domestic Product (GDP), which includes 19 euro-member countries, grew 0.6% quarter on quarter, to 5.4% annual growth.

This was a significant revision to the previous flash estimate, which was released mid-May. At that time Eurostat had estimated quarterly euro zone growth at 0.3%. On the other hand, year-on–year growth was anticipated at 5.1%.

Eurostat stated that its previous estimates relied on less data and preliminary estimates of EU countries, which have been revised by national statistical offices.

Final data shows that the euro zone’s growth rate increased in the first quarter, up from a slow pace in 2021’s final quarter. This was despite Russia’s February 24th invasion of Ukraine which caused supply chain disruptions and lowered confidence, leading to a rise of energy prices.

However, the negative effects of war are expected to become more apparent in the second quarter. The eurozone’s growth slowed to 0.2% in the third quarter of 2021 after a 2.3% quarterly increase in Q3. Eurostat’s last data shows.

A rise in stocks and exports drove the better-than-expected increase in GDP in the first quarter. This more than offset decreases in government spending and consumer purchases.

In smaller countries, economic growth was strong with Ireland recording a 10.8% quarterly rise. The GDP of Germany, Italy and France grew by 0.2%, 0.1%, respectively, and fell 0.2% in France.

Eurostat reported that employment growth was 0.6% in the quarter-on-quarter and 2.9% for the year. This is an increase of 0.5% and 2.6%, respectively, from Eurostat’s earlier estimates.

Also, employment growth accelerated from quarter to quarter. It was 0.4% for quarterly and 2.1% year-over-year.