Economists are feeling upbeat, with signs the worst could be behind us

Westpac's new report suggests the recent return to broadly neutral monetary policy settings - will stimulate economic growth.

It predicts annual growth will lift more than two percent next year and almost three percent in 2026.

Chief Economist Kelly Eckhold says we're also seeing some bright spots in the primary sector industries - especially dairy and horticulture.

He says the fall in interest rates should reduce some of the pressure on household budgets - which should improve spending.