THE EUROPEAN COMMISSION forecast Monday that the eurozone economy is likely to grow twice as fast this year as was previously thought.

The strong growth of the Germany economy is being mainly credited for the changed forecast.

The EC said that it now expects the eurozone to grow by 1.7% this year, rather than the 0.9% it forecast last May, which is up from a 4.1% contraction in 2009.

The new forecast is in line with figures predicted by the European Central Bank earlier this month, which outlined a growth of about 1.4 to 1.7% this year.

“The European economy is clearly on a path of recovery, more strongly than forecast in the spring, and the rebound of domestic demand bodes well for the job market,” Economic and Monetary Affairs Commissioner Olli Rehn said in a statement.

“However, uncertainties remain and safeguarding financial stability and continuing fiscal consolidation remain key priorities.”

Rehn stressed that structural reforms aimed at sustaining growth and job creation were essential to keep Europe on a steady tack.