A new report shows Western Australia is by far the best performing state in almost all areas of economic performance.

CommSec's quarterly State of the States report assesses eight indicators including economic growth, retail, construction and population growth, and Western Australia was at or near the top in all of these bar housing starts.

The research confirms the resources boom is driving WA's economic performance, leaving the rest of the country in its shadow.

CommSec's chief economist Craig James says it is a surprise to see just how well WA is doing.

"Western Australia is on top in six of the eight indicators," he explained.

"The only weakness I suppose is dwelling starts - it ranks fifth out of the eight state and territory economies and housing finance is third - but really Western Australia first, daylight second."

The ACT and the Northern Territory along with Queensland and Victoria are the next grouping of economies, trailing behind these are New South Wales and South Australia and in last place, Tasmania.

The economic divergence extends to specific regional areas, with many of those not directly touched by the mining boom struggling, particularly areas adversely affected by the high Australian dollar.

"Places like the Gold Coast and also areas like Cairns which are feeling the effects of the fact that Australians are taking their holidays overseas," Craig James observed.

"Manufacturing, well certainly parts of South Australia and Victoria, are feeling the effects of workers moving into Western Australia and other parts of the economy."

Mr James says this extreme divergence in the economy creates a big challenge for the national government.

"Western Australia is getting a lot of benefits at the moment from the mining boom, the Northern Territory is getting that as well, but some states are missing out," he added.

"We do know that the Federal Government is providing assistance to some industries, perhaps they also need to be looking at the regions, and particularly states like Tasmania could do with some assistance from the Federal Government."