The German IFO, the French Insee and the Italian Istat institutes said in its survey on Tuesday that the economy in the Eurozone is expected to continue to recover moderately. Real gross domestic product (GDP) is expected to rise by 0.4% in the first three quarters of 2016. The growth will be driven by domestic demand.

According to IFO, Insee, and Istat, inflation in the Eurozone is expected to be -0.1% year-on-year in the second quarter of 2016 and 0.3% year-on-year in the third quarter of 2016. Low energy prices weigh on inflation.

Downside risks to the Eurozone's economy is the slowdown in emerging economies, the survey said.