New Zealand to enter new coronavirus phase this week

New Zealand will significantly relax its stringent COVID-19 lockdown restrictions this week, with people warned social distancing regulations will remain in place.

Prime Minister Jacinda Ardern said New Zealanders will be under Level Two rules From Thursday.

"At Level Two we are now out and about again, just about all parts of the economy are opening up again," Ms Ardern said.

People will be allowed to gather in groups of 10 or fewer, and businesses including restaurants and cafes will be allowed to re-open.

Bar areas will be allowed to open later this month, but eateries are allowed to provide alcohol.

"Getting to this position early has saved jobs and businesses, but there is a long, long road to full recovery," Ms Ardern said.

She said the government's upcoming budget would seek to offer more support to businesses most affected by the pandemic.

She also took the opportunity to remind people of the expectations of physical distancing.

People should keep their distance from others while in public, and stay home if they're sick.

Anybody with cold and flu symptoms should call their doctor and get tested. Regular hand-washing is still encouraged.

Ms Ardern said in two weeks, the conditions would be reviewed.