Consequently, the improved domestic consumption could help the Eurozone economy expand 1.4% this year compared to 0.8% in 2014, according to IHS Global Insight’s chief European economist, Howard Archer.

“(But) there is a significant risk that the anticipated help to growth coming from low oil prices and the weak euro will be diluted by persistent business and consumer caution resulting from fragile confidence,” Archer said in a note.

SPDR EURO STOXX Small Cap ETF

For more information on the Eurozone, visit our Europe category.

Max Chen contributed to this article.