Published: Mon, May 07, 2018
Medical | By Marta Holmes

California's economy now the world's 5th biggest

California's economy now the world's 5th biggest

California's GDP increased by $127 billion from 2016 to 2017. Since then, the largest US nation has included two million jobs and also grown its GDP by £ 700 billion. With a GDP of $2.7 trillion, California is now the world's fifth most powerful economy.

California, which has a population of 40 million people, managed to surpass the economy of the United Kingdom, which has a far larger population of 65 million people.

It also reflects a substantial turnaround since the Great Recession.

More news: Salman Khan's Bail Plea Hearing In Blackbuck Poaching Case Today, Reaches Jodhpur

"We have the entrepreneurial spirit in the state, and that attracts a lot of talent and money", said Sung Won Sohn, an economics professor at California State University Channel Islands, the New York Times reported.

'And that's why, despite high taxes and cumbersome government regulations, more people are coming into the state to join the parade'. Real estate and the financial industry were behind a growth of $26 billion. The manufacturing sector grew by $10 billion, while agriculture had little impact on the GDP growth. The state last occupied the same fifth-placed spot in 2002 but the Great Recessions sparked a drop in its fortunes, falling as low as 10th in the world by 2012.

But California's Gross State Product jump by $700 billion and created 2 million jobs in the last six years.

More news: South African film-maker was killed by a giraffe

California's economic output is now surpassed only by the total GDP of the United States, China, Japan and Germany. Their country has 12 percentage of their USA populace but donated 16 percent of the nation's labour growth among 2012 and 2017. The state is an overachiever in national terms, accounting for a little over 14 percent of the USA economy despite only having 12 percent of the population.

Experts said that California's strong economic performance is driven by worker productivity.

Economists noted that almost all economic sectors were profitable in California.

More news: WhatsApp Business App Will Soon Land in the Apple App Store

That pushed the state of 40 million people up one spot from sixth place a year ago, topping the United Kingdom, which has a population of about 65 million.

Like this: