New Zealand's economy is set to expand next year, as several key indicators point to economic recovery

Kiwibank's latest Bi-annual report forecasts a 2.4 percent growth for 2026, with boosted household confidence, an improved property sector, and a stabilising labour market.

The review cites low interest rates as the leading drivers of growth.

Economist Sabrina Delgado, says with that, local businesses can be confident.

She says high interest rates kill local demand, so affected sectors can expect to bounce back.