Christopher Luxon says it's the Labour Government that is "wet and whiny".
The National Party leader was caught on a Newshub camera on Monday saying: "We have become a very negative, wet, whiny, inward-looking country and we have lost the plot and we have got to get our mojo back."
Reporters questioned him on Tuesday over what he meant by the remark.
"I'm calling the Labour Government wet and whiny," Luxon replied. "There's nothing wrong with New Zealand or New Zealanders. It's the best country on planet Earth and we have endless potential."
The National leader said New Zealand had gone backwards under the current Government and it would be "positive" under an "ambitious" National Government.
He said he believes New Zealand is a "country of endless potential" and that he is a "big patriotic Kiwi".
"I've taken on this job and come to this job two years ago because that's how I feel, that we are not realising our potential. We are not solving our problems."
Luxon made his comment on Monday after announcing National's agriculture emissions reduction policy.
Prime Minister Chris Hipkins appeared startled when Newshub told him what Luxon had said.
"Sorry, Christopher Luxon said that? Well I guess it makes a change that he is running New Zealand down as opposed to running the country down while he is overseas."
Luxon called New Zealand businesses "soft" while in the United Kingdom last year and once told an Australian newspaper that New Zealand is "fearful, negative and inward".