NZ Economy on Path to Positive Growth Amid Iran War Disruption

New Zealand's economy is showing signs of improvement, according to Westpac's latest economic overview. The country has weathered the disruption caused by the Iran war relatively well and is on a path to positive growth.

Chief economist Kelly Eckhold expects economic growth of 2 percent over the full year, lifting to 3 percent next year. Exports were a key driver of this growth, thanks to strong commodity export prices and solid trading partner growth.

The official cash rate (OCR) is expected to increase to 4 percent through next year to help bring inflation back to target. Headline inflation will remain above 3 percent until the middle of next year.