New Zealand has tumbled down the OECD business confidence rankings to the second lowest among countries in the developed world.

Two years ago New Zealand was the second highest in the OECD with 33 of the 35 countries trailing it. Now everyone except South Korea is above New Zealand.

Amy Adams, National finance spokesperson, said it was a shocking revelation given New Zealand has typically been a haven of political and economic stability.

"Given the high level of political uncertainty around the world it is a shocking revelation that New Zealand – typically a haven of political and economic stability – has the second lowest level of business confidence in the OECD," Adams said.

Adams called the fall a damning reflection of the current Labour Government's economic management.

"To have fallen so far in such a short space of time is a damning reflection of this Government's economic management," Adams said.

"It is clear the Government's low-growth policies are having a major impact, and are driving New Zealand's appallingly low business confidence – though the Government is still refusing to acknowledge that."

The business confidence index (BCI) is based on enterprises' assessment of production, orders and stocks, as well as its current position and expectations for the immediate future. Opinions compared to a "normal" state are collected and the difference between positive and negative answers provides a qualitative index on economic conditions.