According to new federal data, California has surpassed the United Kingdom as it becomes world’s fifth largest economy.
The data said the state’s gross domestic product increased by US$127bn between 2016 and 2017, rising above US$2.7tn. At the time, the UK economic output reduced when measured in dollars, in part because of fluctuations in exchange rate, reported CNBC.
Irena Asmundson, chief economist at the California Department of Finance said excluding agriculture, all economic sectors have largely contributed to the state’s GDP rise. The sectors include the entertainment industry in Hollywood and technology sector in Silicon Valley. Financial services and real estate drove growth to US$26bn, the information sector involving technology firms at US$20bn and the manufacturing sector up US$10bn.
Overall, the state has only 12% of the US population, and yet has granted 16% of the country’s job opportunities between 2012 and 2017. Lee Ohanian, an economics professor at University of California said: “The non-coastal areas of CA have not generated nearly as much economic growth as the coastal areas.”