Speaking to Jeremy Vine on BBC Radio 2, Carwyn Jones said inward investment and tourism were both playing their part.
He admitted there were areas such as the valleys still struggling to recover from the decline of heavy industry.
But Mr Jones added that London had a higher rate of unemployment than Wales, which had been creating jobs faster than the UK as a whole.
The first minister also dismissed suggestions that Welsh Labour faced a similar threat from Plaid Cymru as his Scottish colleagues faced from a surge in support for the SNP.
"People can see what we can offer as a government here in Wales," he said.
"As a result of that, Labour support is holding steady."
The Welsh economy is "moving forward pretty well", the first minister has said.