(BRUSSELS) - European economic growth rebounded in the third quarter despite financial market swings and the record strength of the euro and oil prices, an official EU estimate said Wednesday.

After a second-quarter soft spot, economic growth in the 13 nations sharing the single currency accelerated in the three months through September to 0.7 percent over one quarter and 2.6 percent over one year.

The result marked an improvement from the second quarter when eurozone gross domestic product (GDP) grew 0.3 percent over one quarter and 2.5 percent over one year, the European Union's Eurostat data agency said.

The third quarter figures, which were adjusted for seasonal variations, marginally exceeded economists' forecasts for growth of 0.6 percent over one quarter and 2.5 percent over the year.

Meanwhile, the 27-nation EU economy also picked up in the period with growth of 0.8 percent over one quarter and 2.9 percent over one year.

"Eurozone GDP growth rebounded well in the third quarter, following a marked slowdown in the second quarter," Global Insight economist Howard Archer said.

"Growth appears to have been led by a renewed strengthening in business investment after it faltered in the second quarter, while consumer spending was probably relatively solid," he added.

The improvement in the third quarter came despite dramatic volatility on financial markets and as the euro and oil price rose to all-time highs, which have cast a pall over Europe's growth outlook for next year.

The European Commission warned on Friday that European economic growth would be weaker than previously expected next year, because of nerve-wracked financial markets, a relentless rise in oil prices and a weakening US economy.

In an autumn update of its economic forecasts, the EU's executive arm cut its 2008 growth estimate for the 13 nations sharing the euro to 2.2 percent from the 2.5 percent projected in May.

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