(Bloomberg) -- The euro-area economy grew more than initially estimated at the start of the year as the region moved past a wave of Covid-19 infections and defied headwinds from the early days of the war in Ukraine. 

Economic output rose 0.3% in the first quarter, exceeding a flash reading of 0.2%, according to Eurostat data released Tuesday. Employment, meanwhile, gained 0.5% during same period. 

The data highlight Europe’s underlying strength as consumers emerge from the pandemic with pent-up demand and large amounts of savings, allowing them to better withstand the pressures created by Russia’s invasion. Even so, the conflict has added to cost-of-living concerns by stoking energy prices and adding to already record euro-zone inflation.

The European Commission this week cut its growth outlook for 2022 to 2.7% from 4%, though still expects the labor market to improve. Employment in the currency bloc gained for a fourth straight quarter, pushing the total further above its pre-pandemic level, surpassed at the end of last year.

©2022 Bloomberg L.P.