The agency said New Zealand has recovered quicker than most advanced economies because it has contained COVID-19 better than most.
"I actually think New Zealand's in a recession. It doesn't feel like it."
Rocketing rent prices have hit beneficiaries the hardest while high-spending households benefit from falling interest payments.
"It's been surprising."
Unemployment dropped to 4.9 pct in the December quarter, with the Finance Minister saying "the trend is really good".
Leading economists share their outlook for 2021
Rural areas are essentially back to pre COVID levels - but cities have some catching up to do.
Factors like employment, population growth and house prices are taken into account to rank the economic performance of the country's regions.
Cutting taxes for the rich has no effect on employment or GDP growth - increasing them could help us fight COVID-19.