The European economy has seen sign of recovery in the first quarter and is expected to continue growing in the second quarter, the European Commission said on Tuesday.

According to the EU, growth in the second half of 2013 is expected at 0.5 percent compared to the same period in 2012 in the region.

"On an annual basis, real GDP growth this year is estimated at 0 percent in the EU and -0.4 percent in the euro zone. Looking ahead, economic growth is forecast to gradually gather pace over the forecast horizon, to 1.4 percent in the EU and 1.1 percent the euro zone in 2014, reaching 1.9 percent and 1.7 percent in 2015, respectively," it said.

However, according to the EU, given the weakened export and growth of emerging market economies in the next two years, domestic demand is to gradually become the main engine of growth in Europe.

Olli Rehn, commission vice-president for Economic and Monetary Affairs and the Euro said: "There are increasing signs that the European economy has reached a turning point. The fiscal consolidation and structural reforms undertaken in Europe have created the basis for recovery."

But he also added that it is too early to declare victory: unemployment remains at unacceptably high levels. "That's why we must continue working to modernize the European economy, for sustainable growth and job creation," he added.

The EU's unemployment rate is 12 percent. The EU aims to decrease the number toward 10.7 percent by 2015, "though cross-country differences will remain very large".