The largest contribution came from the services sector, which grew by 0.6%, while production also made a small upward contribution to the latest figure with a 0.2% growth rate.

These positive contributions were partially offset by construction, however, which fell by 2.5% since Q4 2012.

The Chancellor of the Exchequer George Osborne said: "Today’s figures are an encouraging sign the economy is healing. Despite a tough economic backdrop, we are making progress. The deficit is down by a third, businesses have created over a million and a quarter new jobs, and interest rates are at record lows.

"We all know there are no easy answers to problems built up over many years, and I can’t promise the road ahead will always be smooth. But by continuing to confront our problems head on, Britain is recovering and we are building an economy fit for the future."

Forum of Private Business chief executive Phil Orford said: "We have to look at these figures positively – the facts are that the economy is now making progress. The spectre of a triple-dip recession is receding, and with the announcement on Funding for Lending yesterday, this is probably the most positive week for small business for some time.

"If these figures can help convince both consumers and businesses that the UK has turned a corner, it paves the way for confidence to return and be a springboard for accelerated growth."

Comparisons with the economic crash five years ago show that GDP in Q1 2013 is 2.6% below Q1 2008, when the economy peaked prior to the 6.3% fall in output by Q2 2009.

Business secretary Vince Cable said: "We've always said the road to recovery would be a marathon, not a sprint.

"Today's figures are modestly encouraging, and, taken alongside other indicators such as employment figures, suggest that things are going in the right direction.

"However there is still a long way to go and some serious issues such as the systemic lack of bank lending to SMEs, the weakness in the construction sector and the need to press further on trade and exports.

"These issues all need to be addressed before people feel like the economy is genuinely starting to recover."