(fxcue news) - The euro area economy grew in the fourth quarter at a faster than initially estimated pace, driven by consumption and investment. Eurozone economic growth for the fourth quarter was revised up to 0.2 percent from 0.1 percent, Eurostat reported. Nonetheless, this was weaker than the 0.4 percent expansion seen in the third quarter. On a yearly basis, gross domestic product logged an expansion of 1.2 percent, which was revised up from 0.9 percent. The rate was also faster than the third quarter's 1.0 percent growth. On the expenditure-side, household consumption and government spending grew 0.4 percent each. Gross fixed capital formation moved up 0.6 percent. While exports edged down 0.1 percent, imports grew by 0.1 percent. As a result, the contribution of foreign trade to GDP growth was negligible. Further, data showed that the number of employed persons edged up 0.1 percent sequentially, as initially estimated, and was slower than the 0.2 percent rise in third quarter. Year-on-year, employment growth slowed to a revised 0.7 percent from 1.0 percent in the previous quarter. For the whole year of 2024, GDP expanded 0.9 percent after rising 0.4 percent in 2023, data showed. On Thursday, the European Central Bank reduced its key interest rates for the fifth policy session in a row and also lowered the growth forecast mainly due to prospects of weak exports and investment in the backdrop of high trade uncertainty amid the tariffs war. The ECB staff lowered its growth forecast for this year to 0.9 percent from 1.1 percent. The outlook for next year was downgraded to 1.2 percent from 1.4 percent and the prediction for 2027 was retained at 1.3 percent. The risks to economic growth remain tilted to the downside, the bank said. An increase in defence and infrastructure spending could add to growth, ECB President Christine Lagarde said.