A former Deputy Prime Minister's claiming New Zealand's economy is in serious trouble.

Winston Peters told Mike Hosking he's going on major key economic indicators such as the amount of Government debt and level of exports.

“It's what happens to our economy. Our economy is in serious straits now. I cannot believe the number of economists saying 'we are going to tough our way through this'. If you look at every aspect of our economy, we are not doing well at all."

By contrast, Peters says Australia's economy is holding up very well.