Economic growth in the eurozone will finish higher than forecast in 2010, the European Central Bank (ECB) has said.
The ECB expects growth this year to be about 1.6%, up from its June forecast of 1%. Next year it forecasts growth of 1.4%, compared to its previous estimate of 1.2%.
ECB president Jean-Claude Trichet, who also dismissed fears of a double-dip recession, said the optimistic forecast resulted from a recent growth spurt and expects further "positive underlying momentum" going forward.
However, he also warned the figures could be overly-upbeat and sounded a cautionary note over slower growth in other advanced economies - widely interpreted as a reference to the US.
The ECB left eurozone interest rates at 1%, as was widely expected.
The eurozone economy grew 1% in the second quarter.
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