The South Island seems to be pulling ahead of the North as New Zealand crawls out of the recession. 

Kiwibank’s latest report reveals economic activity is picking up across most of the country - but recovery remains fragile. 

It indicates booms in agriculture and tourism have aided recovery in places like Otago and Southland.

Kiwibank chief economist Jarrod Kerr says the tide is turning for the economy, but the nature of last year's recession means recovery will take longer than expected.

"It's not fast enough for me - the way we're recovering, I think we need more stimulus, I think we need more policy support."

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