Fuelled by spiking demands from China and India for its resources and equally boasting of a steady growing labour market, Western Australia proved itself as the country's strongest performing economy, soaring past the ACT as it slid to second spot on the latest CommSec state and territory economic rankings.

CommSec said that South Australia, the Northern Territory, Victoria and Tasmania immediately followed the top-two finisher while Queensland and New South Wales are locked in occupying the seventh place.

CommSec chief economist Craig James said that the economic results of all the states and regions were gauged basing on eight major indicators such as economic growth, retails spending, unemployment and population, with an overall conclusion showing that Australia's economic regions are delivering solid numbers.

Mr James said that the country's economy is doing well, noting that unemployment is relatively low while the levels of investment and population growth are reflecting encouraging figures and "if you put all our states and territories together against other countries around the world, Australian regions would come out on top."

He raised concern though that a wide gap has been prominently seen between the top state and the two states languishing at the bottom rung of the ranking, adding that lingering effects of the recent global financial crisis are still restraining the economies of Queensland and NSW.

Still, Mr James is upbeat that Australia is turning in significantly encouraging economic figures as "all states and territories across the economy are doing well but, if there's one state which is really standing head and shoulders above the rest, that's Western Australia."