The economy in this country could do better than expected in the next 18 months thanks to the regions.

Most of our economic momentum will come out of the regions, thanks to strong export incomes and spending activity, according to the latest Infometrics economic forecasts.

There are still some problems, namely not enough workers, but still promising signs.

Chief forecaster at Infometrics Gareth Kiernan told Mike Hosking that the slowest growing regions at Auckland, Wellington, and Christchurch.

He says there are concerns amongst business owners in these areas.

“They are concerned about skills shortages and labours shortages throughout the region, and they were concerned about some of the proposals around clamping down on migration and foreign labour.”

Kiernan says that that issue will be more an issue for the urban centres than the regions, though Labour seem to have softened their staff.

LISTEN TO GARETH KIERNAN TALK WITH MIKE HOSKING ABOVE