Otago had been neck-and-neck with Auckland in the previous survey but had now fallen back, according to the ASB regional economic scoreboard which ranks 16 regional council areas around the country.
"This fall from grace [for Otago] has largely been on the back of its poor retail sales performance, with the other measures generally running around the middle of the pack," ASB economist Chris Tennent-Brown said in a statement.
However, Otago retains a three-star rating (out of five) because of its top regional rating in employment growth, for the quarter to September.
"This suggests potential for a bounce-back in activity in the region over the coming year," Mr Tennent-Brown said.
Auckland held on to its top ranking in the latest scoreboard and "has been the place to be" for five consecutive quarters, he said.
Of the 16 regions, only six had attained even a three-star rating; being Auckland, Waikato, Bay of Plenty, Wellington, Canterbury and Otago.
While on a star-rating par with Canterbury, the full effects of the earthquake there were still to be felt. There was a clear decline in the city's house prices and retail sales, particularly in new-car sales.
