California’s gross domestic product has surpassed the UK’s GDP between 2016 and 2017, according to a recent federal report. With a GDP of $2.7 trillion, California is now the world’s fifth most powerful economy.
The huge economic boom was mainly due to the Golden State’s tech industry, entertainment sector, financial services, and thriving real estate. California’s most profitable areas are those around San Jose, San Francisco, San Diego, and Los Angeles.
According to a federal report, California’s GDP climbed by $127 million over just one year. In the meantime, the UK’s economy stalled when the output is measured in dollars.
Economists noted that nearly all economic sectors were profitable in California. Real estate and the financial industry were behind a growth of $26 billion. The IT sector generated an extra $20 billion. Manufacturing grew by $10 billion.
California Behind 16% of Nation’s Growth
The last time the Golden State hit the fifth position on the list of the world’s largest economies was in 2002. Ten years later, it sank to the 10th position. Meanwhile, the largest U.S. state by population has boosted its GDP by $700 billion and added 2 million new jobs.
- California is now behind the United States, China, Japan, and Germany.
- The U.S. state which is home to 12 percent of the United States’ total population (40 million people) accounted for 16% of the nation’s job growth from 2012 to 2017.
- California’s share of the nation’s economy currently stands at 14.2 percent.
Analysts believe that California’s unusually strong economic performance is triggered by worker productivity. By contrast, the U.K. has a smaller GDP even though it has 25 million more residents than the U.S. state.
The coastal areas of California were the most productive, with non-coastal areas lagging behind. The agricultural sector was the only economic sector that hasn’t contributed to the state’s staggering economic growth.
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