The UK economy emerged from its 18-month recession at a faster pace than expected, figures released by the Office for National Statistics (ONS) show.
Britain's gross domestic product (GDP) grew 0.3% in the final three months of 2009, up from its first estimate of 0.1% and stronger than the 0.2% revision made by City economists.
It follows better-than-expected showings from most parts of the economy.
The services sector, the biggest part of the economy, grew 0.5% instead of the 0.1% initially estimated; manufacturing was also revised upward, with industrial production growing 0.4% instead of 0.1%. Elsewhere, Government spending increased 1.2%.
It represents welcome news for Gordon Brown ahead of this year's General Election.
Adrian Lowcock, senior investment adviser at Bestinvest, says: "The announcement that UK GDP figures have been revised upwards should have come as no surprise as the initial figure was lower than expected.
"However, the strong figure makes it less likely the Bank of England will reintroduce further Quantitative Easing and a fall in UK business investment raises concerns that the UK will experience a double dip recession."
However there is concern the figure is not an accurate representation of the economy as it currently stands.
"Since then [end of 2009], there has been a string of really poor data out., Mark Bolsom, head of the UK trading desk at Travelex, says.
"January's retail sales were dire, claimant count has shot up and our national debt has increased - there is more concern in the markets about what is going on now than a revised GDP figure.
Sterling dropped in response to the news. Against the euro it fell 0.31% to €1.1212. Cable fell 0.07% to $1.5250.
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