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Golden State Reclaims Luster; Ranks as World’s 5th Largest Economy
California has officially recovered from a post-recession low, and now ranks as the world’s fifth largest economy by gross domestic product. The state’s economy has rebounded from a No. 10 ranking in 2012.
The state’s overall economy grew by $429 billion (after inflation) to $2.75 trillion, which translates into an average 3.5% annual expansion pace since 2012. During the 2007 to 2012 recession period, the state experienced a 0.1% per-year increase.
The turnaround of the state’s fortunes reflects a rosy business climate that has surprised some doubters. The reversal has translated into job and wage growth, robust real estate markets and brighter outlooks for many Californians facing poverty.
Among the key California business output trends driving the growth included:
-Private industries’ contribution to California output was $404 billion in the past five years
– Real estate industry contributed $467 billion of output in 2017, up 3.4% annually since 2012
– Information trades boosted output by an inflation-adjusted $85 billion, followed by real estate trade, up $72 billion since 2012
– Information sector set a 9.2% yearly growth pace
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Economy
