The UK has exited the deepest recession since the 1930s after the economy grew by 0.1% in the last three months of 2009. Although the growth brings to an end the previous six consecutive quarters of economic contraction, it is still weaker than the 0.4% growth that had been originally forecast.

While unemployment also fell last week for the first time in 18 months, economists are warning the recovery remains fragile. The UK is the last of the world’s major economies to leave the recession, and its economy is weighed down by the fragile banking sector, as well as high consumer and government debt. Financial markets have already reacted to the news having hoped for stronger growth - sterling has fallen against both the dollar and the euro.

The UK recession began in the April-June quarter of 2008, during which time output slumped by 6%, while public borrowing increased to an estimated £178 billion.