Australians are looking sideways at the strongly performing New Zealand economy and now don't regard it as a cot case.
That's the view of New Zealand Finance Minister Bill English as he considers the mix of circumstances, policy and leadership that got New Zealand its reluctant rock star economy status.
New Zealand had followed the "traditional Australian policy model of moderate change and consistency over time" to turn around its economy.
"We've set out to do the same," English told AAP.
New Zealand has been fortunate because soft commodity prices have been less volatile than prices for Australia's minerals and metals and a decision to take a risk and do a trade deal with China is reaping benefits.
At the same time, political instability in Australia under the former Labor government meant its policy-making model didn't appear to be as robust in the last six to eight years.
"That's how it has looked. There's been a lot of political activity," English said.
"They have had 30 years of consistent economic growth and are adjusting to what is really a moderate slowdown which might pick up again reasonably soon," he says.
The rock star comment, which went viral, was made by HSBC chief economist Paul Bloxham who sees more luck of circumstance than policy drivers in the New Zealand economic story.
English, who's attending this weekend's Group of 20 finance meeting in Sydney as the 21st member at the invitation of 2014 G20 host Australia, admits the comment wasn't helpful and could cause complacency.
But he often gets quizzed about the New Zealand economic story when he travels.
Trade Minister Tim Groser recently summed up New Zealand's economic achievements.
"We expect to be back in budget surplus next year," he said in a speech.
"We are among the fastest growing developed countries, inflation is within our agreed band, business confidence is at an all time high, all 14 regions of New Zealand are growing - 12 of them faster than any time in the last decade - and jobs and real wages are growing."
He then drew breath before adding: "You will find the mood here pretty optimistic".
English is aware of a change in attitude toward New Zealand in Australia.
"There was a tendency to regard us as a kind of economic cot case in a backwater which exports good people to Australia where they do well," he said.
"I think we've just got a bit more respect, that's all."
But he does believe there's no doubt "the famous Australian confidence is down a bit".
Since the mid-1980s, New Zealand has had bursts of good performance followed by softer periods driven by "complacency or exhaustion and sometimes both", English says.
While both the Australia and New Zealand economies are more exposed to Asia, New Zealand's is more stable.
Chinese investment in infrastructure benefits Australian exporters of hard commodities.
But that investment activity can be volatile.
One the other hand, demand for food exports from Asia's rising middle classes is more sustained.
"Now, it's a big advantage to be in the food business," English says.
"Forty years ago it was a disadvantage."
Bloxham is forecasting 3.4 per cent growth this year and expects the kiwi dollar to reach parity with its Australian counterpart in the 2014 second half. Australia is looking at sub-trend growth below three per cent.
"You'll pop the champagne corks and then probably have a very big hangover afterwards because a strong currency will potentially be challenging for lots of the traded sectors in New Zealand," English says.
