Room for more optimism - as export prices help nudge the economy forward

Infometrics' latest forecasts suggest two percent GDP growth could be achieved - by the second half of next year.

It points to high agricultural export incomes driving recovery over the next 18 months - despite geopolitical headwinds.

Chief Forecaster Gareth Kiernan says provincial economies, especially in the South Island, may be the first to see a boost - after a tough couple of years.

He says that money flows through into farmers' bank accounts and will encourage more spending and investment to cement recovery.