Prime Minister John Key has conceded that the TPP is virtually dead in the water.

"The probability of it passing in the lame duck period which is between now and January... If it's not zero it's very close to zero," Mr Key told Paul Henry.

President-elect Donald Trump has been highly critical of the Trans-Pacific Partnership (TPP) trade deal, which he doesn't think is favourable enough for the US.

Mr Key says the chances are even slimmer if President Obama doesn't manage to pass the 12-nation trade deal.

"The reason being that firstly Trump has been deeply opposed, it's hard to believe that the Congress is now going to vote for something that he is so opposed to," he said.

However Mr Key says "the world doesn't cave in" with the end of the TPP.

"Are there impacts? Yes I think there are likely to be impacts but you've got to see what Trump was trying to say in his message.

"He was saying 'Everything Obama did was wrong', now I don't agree with that but [Trump] doesn't like the TPP because Obama did it."

John Key says our economy is "cranking" and we have got there without the agreement.

Economist Shamubeel Eaqub agrees saying it's not a huge blow for New Zealand.

"The TPP was only going to add 1 percent over 40 years or whatever it was anyway, so let's not get too caught up in that."

Newshub.