Based on the principles of evaluation index construction and the current situation of sustainable development of the regional economy, the evaluation index system of sustainable development level of the regional economy is determined. The distance spatial weight matrix is used to define the weight coefficients of the evaluation indicators, and then its weight coefficients are substituted into the formula for calculating the Moran index to measure the Moran index of the sustainable development level of the regional economy. After the spatial autocorrelation analysis of regional economic sustainable development, the spatial panel model with fixed effects is determined by the Hausman test, and the model is applied to empirically analyze the regional economic sustainable development. The data shows that the value added by industry significantly affects the sustainable development of the regional economy in a positive direction at the 5% level. In addition, the values of all indicators pass the robustness test. Finally, we propose corresponding optimization suggestions to improve the sustainable development path of the regional economy.