ANZ Bank sees the New Zealand's economy as unbalanced, and says there is a risk of it sliding back into recession.
In a quarterly economic forecast, the bank warns that much of the confidence in the economy's recovery appears to be built on hope, rather than substance.
Senior market economist Khoon Goh says the economy looks set to recover, but it may take longer, and at a slower pace than many predict.
He says there is still a large current account deficit, the household sector faces a high level of debt and the high New Zealand dollar is putting the chance for an export-led recovery at risk.
Mr Goh says the economic recovery is based around housing and spending and that can't continue.
ANZ forecasts the economy recovering and growing modestly, but says there is the chance it could go through a double dip.