However, the Office for National Statistics (ONS) also said the downturn had been deeper than it had first thought, with GDP declining by 6.2% from peak to trough, meaning the recession was the most severe since records began.

Upward revisions to services and production were cited as the reasons behind the increase in GDP in the fourth quarter.

Output in the production industry grew by 0.4% compared with a fall of 1% in the previous quarter, with manufacturing output also increasing by 0.8% compared with a drop of 0.3% in the previous quarter.

Exports of goods and services rose by 3.7%, while imports rose 4.1%.

However, despite the stronger-than-expected GDP, the revised figures still leave an annual fall of 3.3% from the same period in 2008 and a sluggish recovery in 2010 is still expected.

In January, the UK recession officially ended when GDP figures from the ONS revealed that the economy had grown by 0.1% in the fourth quarter of 2009.

In December, the CBI predicted that the UK economy would not reach pre-recession levels until the end of 2011, with growth in 2010 limited to 1.2%.