Steven Joyce has dismissed fears of a recession in the next two years.

Appearing on TV3's The Nation, Joyce said he was presenting a new foreign investment strategy to Cabinet on Monday, which involved partnering with Australia to create "a pipeline of private sector investment opportunities to international investors" aimed at the regions.

He said the country needed both domestic and foreign investors, but needed to be careful not to be "over-focused on China".

When asked if the country could be at risk of recession in the next two years, he said things were "it's going to be bumpy" but "we should be very careful not to talk ourselves down too far."

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Joyce dismissed estimates from commentators like Goldman Sachs of a five-year low in dairy prices, but thought prices may stay slow, "slightly longer than Fonterra" had thought.

"I'm not arguing that it isn't a tougher time for dairy, because it is a tough time for dairy, but it will be important not to talk ourselves into a funk about it".