Eurozone 2011 growth revised up to 1.6%

(BRUSSELS) - The eurozone's economy will grow by 1.6 percent this year but the recovery will remain uneven within the 17-nation single currency area, the European Commission forecast on Tuesday.

The EU's executive arm, which late last year forecast 2011 growth of 1.5 percent, said the improved outlook was supported by "better prospects for the global economy and upbeat EU business sentiment."

"While exports should continue supporting the recovery, a rebalancing of growth towards domestic demand is expected for 2011, resulting in more sustainable growth," said EU economic affairs commissioner Olli Rehn.

"However, the recovery remains uneven and many Member States are going through a difficult phase of adjustment," he said.