California has surpassed UK’s economy becoming the world’s fifth-largest economy
According to new federal data, California’s economy has become the world’s fifth largest economy beating United Kingdom’s. The last time California held the fifth place, was in 2002.
From 2016 to 2017, California’s GDP rose by $127 billion surpassing $2.7 trillion.
However, in the meantime, United Kingdom’s economic output dropped when measured in U.S. dollars because of fluctuations in exchange rate.
The data displayed the extent of California’s economy which is mostly concentrated in the coastal areas like San Jose, San Francisco, San Diego and Los Angeles. It has approximately 40 million people, a flourishing agriculture sector, prosperous technology sector in Silicon Valley, and the world’s entertainment hub in Hollywood, all these sectors contribute to California’s higher Gross Domestic Product except agriculture.
Lee Ohanian, an economics professor at UCLA said in an email, “The non-coastal areas [of California] have not generated nearly as much economic growth as the coastal areas.”
Although California has 12% of the U.S. population, between 2012 and 2017, it contributed to 16% of the country’s job growth.
Ohanian also said that compared to other developed economies, California’s robust economic performance is due to its worker productivity.
Credit Source – Los Angeles Times