Britain's economy grew by a stronger-than-expected 0.3 per cent in the first quarter of the year compared with the previous three months, official data showed yesterday.

The Office for National Statistics said in a statement it had revised upward its estimate for gross domestic product growth in the first quarter of 2010. The initial estimate given last month was for 0.2-per cent expansion.

"GDP increased by 0.3 per cent in the first quarter of 2010," the ONS said in the release.

"This has been revised from a rise of 0.2 per cent in the preliminary estimate of GDP, owing to upward revisions to production."

Economists said the modest upgrade would be welcomed by Britain's new government, which rose to power earlier this month, but described the growth rate as "extremely weak".

"Our new coalition government will welcome this news but growth remains extremely weak and tenuous," said Mark Bolsom, head of the UK trading desk at London-based currency group Travelex.

"With the worry of contagion from the financial crisis in the eurozone and swingeing public spending cuts already underway, economic recovery remains fragile."

The British economy clawed its way out of a fierce recession in late 2009 after a historic downturn that lasted for a record six successive quarters. Some market watchers fear that the country could tip headlong into a so-called "double dip" recession - or second phase of the downturn. British GDP meanwhile shrank by 0.2 per cent in the first quarter, compared with the equivalent January-March period in 2009, according to the ONS. That was also an upgrade from the previous estimate of minus 0.3 per cent.

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