New Zealand's economy is still feeling the aftershock of earthquakes and recession and needs more investment from Australian companies, Prime Minister John Key says.

"(Our) government needs to create jobs ... but in the end we need you to invest and take some risks by putting your investments in New Zealand," Mr Key told a business crowd at a Trans-Tasman Business Circle lunch in Sydney on Thursday.

Mr Key is in Australia on a two-day visit to meet representatives from the big four banks to discuss economic developments and their impact on the New Zealand Australian economies.

Mr Key said while trade ties between the two nations were strong, the NZ economy was still feeling the effects of the 2011 Christchurch earthquake and the 2008 recession.

Australia is one of New Zealand's biggest trade partners, with Australian exports topping $7.6 billion as of January 2012, according to Austrade.