The UK economy has escaped recession after growing 0.6 per cent between January and March, according to the Office for National Statistics.
It rebounded with faster-than-expected growth after a consensus of economists had previously predicted a 0.4 percent improvement.
It comes after two quarters of decline, representing a technical recession, in the second half of 2023.
Responding to the GDP figures, Chancellor Jeremy Hunt said: “There is no doubt it has been a difficult few years, but today's growth figures are proof that the economy is returning to full health for the first time since the pandemic.
“We are growing this year and have the best prospects among European G7 countries for the next six years, with wages growing faster than inflation, falling energy prices and £900 tax cuts for the worker average that will affect bank accounts.
Performance was particularly driven by improvements in the services and manufacturing sectors, which grew by 0.7% and 0.8% respectively.
On Friday, the ONS confirmed the quarterly performance after economic growth of 0.4% in March, again driven by the UK services industry.
There was notable growth for the human health and social services sector, administrative and support services, as well as wholesale and retail companies.
Construction output, however, fell during the month, but its 0.4% drop represented a significant reduction in the decline after a 2% drop in February.
ONS director of economic statistics Liz McKeown said: “After two quarters of contraction, the UK economy returned to positive growth in the first three months of this year.
“There was widespread strength across all service industries, with retail, public transport and transport and healthcare performing well.
“Automakers also had a good quarter. This was only slightly offset by another weak quarter for construction.”
Labour's shadow chancellor Rachel Reeves said: “This is not the time for Conservative ministers to do a victory lap and tell the British people they have never had it so good.
“The economy is still £300 smaller per person than it was when Rishi Sunak became Prime Minister.”
