UK economy avoids triple-dip recession

The UK economy has avoided falling back into a recession after recording faster-than-expected growth in the first three months of the year.

The Office for National Statistics said its first estimate for gross domestic product (GDP) showed the economy grew 0.3% during the first quarter of 2013.

Chancellor George Osborne said it was an "encouraging sign".

But the shadow chancellor, Ed Balls, said that the economy was "just back to where it was six months ago".

The growth in GDP means the economy avoided two consecutive quarters of contraction - the definition of a recession. 

There had been fears the UK would enter its third recession in five years, a so-called triple-dip recession.

Economists say the news should give a small psychological boost to consumers and businesses, but the broader picture of the economy remains the same.

The UK economy has been on a plateau since the financial crisis hit in 2008, with small spurts of growth and contraction.