LONDON (AFP) - Britains economy grew faster than expected in the third quarter, official data showed Tuesday, but the outlook remains clouded by the eurozone debt crisis, government cutbacks and high inflation. Gross domestic product the combined value of all the goods and services produced in the economy expanded 0.5 percent between July and September, the Office for National Statistics (ONS) said in a statement. That beat market expectations for a 0.3-percent gain and marked a significant acceleration from 0.1-percent growth in the second quarter. Finance minister George Osborne welcomed the news as a positive step for the economy, which has struggled to recover since clawing its way out of a vicious recession in 2009. The ONS said GDP also grew by 0.5 percent compared with the third quarter of 2010. The economy forged ahead despite major headwinds from the coalition governments deficit-slashing austerity drive and the burgeoning debt crisis in the eurozone, which is Britains biggest export market. We have to take these figures one step at a time it is a positive step and the economy is growing, Osborne told Sky News. Britain has a difficult journey to make from its debt-fuelled past, made more difficult by things like the problems you see in the eurozone. But we have taken a step down the road and it will lead to further prosperity. We are laying the foundations for the future success of the country, added Osborne, whose official title is Chancellor of the Exchequer.