The Kiwi economy is displaying signs of recovery, with regional scores on the rise for 2024, according to Kiwi Economics.

Chief Economist Jarrod Kerr and Senior Economist Mary Jo Vergara, along with Economist Sabrina Delgado, highlighted the modest yet positive changes in economic activity.

The latest regional heatmap reveals an improvement from mostly low scores to a mix of 3s, 4s, and a notable 5.

Southland tops the list with a score of 5, driven by a robust building boom.

Despite Auckland's strong population growth, its economic activity remains subdued.

Wellington, in contrast, continues to struggle, maintaining a score of 2 due to reduced government spending and hiring freezes.

While Southland and Otago show considerable progress, other regions like Northland, Waikato, and Hawke's Bay have seen their scores rise to 3.

This is a step up from last year’s dismal performance but still reflects moderate activity.

Otago benefits from a rebound in tourism, while Canterbury’s score of 4 is bolstered by post-earthquake reconstruction, despite ongoing drought challenges.

The forecast for 2024 is cautiously optimistic.

Economists expect inflation to ease, interest rates to decrease, and business confidence to recover.

"Next year should bring further improvements as economic conditions continue to thaw," Kerr stated.

Despite ongoing challenges, the overall outlook suggests a gradual economic uplift as rate cuts stimulate investment and consumer confidence.

For now, regions across New Zealand are adapting to a slowly warming economic climate, with hopes for a more robust recovery in 2025.