Region-wide growth was driven by the euro zone's largest economy, Germany, which also posted above-forecast growth for the period, bolstering hopes that its economy is back on track.
A key measure of economic growth, seasonally adjusted GDP in Germany expanded by 0.7 percent quarter-on-quarter, according to official figures—substantially higher than analyst expectations of 0.3 percent. In 2014 as a whole, the German economy grew by 1.6 percent.
It comes after widespread concern about the health of the German economy, following a sharp slowdown in Russia – a major market for German exports. In a gloomy outlook towards the end of 2014, the Bundesbank warned that Germany risked coming dangerously close to recession.
The Russian economy, which is battling a low oil price and Western sanctions imposed following its actions involvement in the Ukraine conflict, is expected to contract this year.
Archer said the German GDP figures "marked a very welcome and much-needed return to form."
"There are currently encouraging signs that German activity is seeing a decent start to 2015, helped by healthy consumer fundamentals of robust real earnings growth and high employment," he added.
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While Daiwa Capital Markets' Chris Scicluna said the initial figures provided cause for "a little more optimism" about the region's economy.
"While (German) exports were reportedly strong, a solid increase in imports left domestic demand the primary source of growth at the end of last year," he wrote in a note.