Figures out today (Friday 26 March) confirmed a much better than expected GDP figure, but the UK is still lagging behind other global economies in the speed of recovery.

GDP stands at 0.3 per cent for the fourth quarter of 2009, although poor business investment figures released yesterday had dampened expectations of an upward revision.

Mark Bolsom, head of the UK trading desk at Travelex, said, ‘Although this is good news, that figure is now historical –relevant only to the last three months of 2009. Since then, there has been a string of really poor data out.

‘January’s retail sales were dire, claimant count has shot up and our national debt has increased – there is more concern in the markets about what is going on now than a revised GDP figure. That’s why the pound dropped in response to what is, in theory, good news.’

Bolsom believes that the upward revision to the UK’s GDP does not mean the country is out of the woods yet. He added, ‘We’re still way behind other global economies in the speed of our recovery and investor sentiment remains negative, as the political and economic future of the UK remains uncertain.’

Sterling dropped in response to the news. Against the euro it fell 0.31 per cent to €1.1212.