New Zealand's economic recovery is gathering steam - casting optimism for the year ahead

ASB's forecasting lower interest rates, more building activity, and a renewed willingness to spend - especially on big-ticket items like cars and electronics

It expects annual growth of more than two-and a half percent in 2026.

Chief Economist Nick Tuffley says exports - particularly dairy and meat - have held up and even seen growth, notwithstanding the US imposing tariffs.

He says it's good - especially when you consider how much noise there was earlier this year about the potential risks to our exports.