The latest figures from the Office for National Statistics (ONS) showed a better-than-expected expansion, beating forecasts of 0.1% growth.
It comes after a 0.3% contraction in Q4 2012, which many had feared would lead to another technical recession.
Chris Redfern, senior dealer at the forex specialists Moneycorp, said: “The IMF’s warning about the cost of British austerity is now likely to be quietly forgotten as the UK returns to solid growth.
“British consumer and business confidence remain fragile and the chances of the recovery yo-yoing again should not be ruled out, but the UK appears to be back on the right track.
“Compared to the Eurozone’s five straight quarters of declining output, the UK’s economy – and Sterling’s prospects – are both looking up again.”
