Otago's economy has been rated only "fair to middling" by the ASB-Main Report March regional economic scoreboard.
The region's neighbours - Canterbury and Southland - are on the "be there or be square" list of achievers.
In the report, ASB said Otago's retail sales not only failed to match the national average - they declined.
The number of people visiting the region was still increasing, but it appeared the housing downturn had affected Otago more than other parts of the country.
Dwelling consents were running 11% below the corresponding period last year.
"A recent scrapping of a Glenorchy subdivision is a sign of the times."
Across the region, employment was down and there were more job losses announced at the freezing works, the report said.
A positive sign was that Dunedin was becoming a "must-see" destination for tourists, and there were hopes that visitor numbers would continue to strengthen.
In Southland, the economy was rated as doing better than most despite the anticipation of the oyster season failing to boost consumer confidence.
"This is surprising given that the region ranks highest for house price gains, for the growth of dwelling construction and car sales.
And unemployment remains the lowest in the country."
The booming dairy industry meant another milk-processing plant would be constructed soon near Gore, the report said.
ASB said the low consumer confidence might be attributable to the veiled threat of the Tiwai Point smelter closing if carbon prices rose too high, or the lack of immigrants.
Only one in 13 Southlanders was born overseas compared to one in three in Auckland.
Canterbury had a slow residential construction market but the region was not just about towns, the report said.
It was a huge farm and playground too.
Canterbury was the region with the most sheep, deer, grains and potatoes and was now the second-largest dairying region.
It was second only to Auckland for the number of guest nights and was making inroads into the finance industry after giving up the idea of funding "shoddy" Auckland car deals.
"With guest nights up 8% and dairy prices astronomical, the region still gets to see retail sales up 6%, while the national average is somewhat less."
