California is Officially the Fifth Largest Economy in The World! Leaves the UK Behind
Welcome to California!
America is a country that proudly holds the title for being the ‘World Power.’ All over the world, every country wants to be part of this gigantic entity due to its rapid economic advancement. However, one of its states has just been confirmed to be world’s fifth strongest economy, surpassing the UK.
A recent report obtained from the latest federal statistics which was released last week shows that California’s economic strength has gone ahead of British. Now, the state is the fifth biggest economy in the world.
The gross domestic product (GDP) for the American state leaped to $127 billion between 2016-2017 according to the statistics. In the meantime, the United Kingdom experienced a slight downturn recently. Britain’s economic productivity melted a little through that period when it’s weighed in the American currency. The factor that encouraged this low achievement is indirectly related to unstable exchange values.
The figures depict the precipitous intensity of how the state’s economy has grown. California is a place where close to 40 million citizens dwell, coupled with a burgeoning industry for technological development, based in Silicon Valley. We can’t also forget Hollywood, the headquarters of entertainment throughout the world. Then, Central Valley-based salad bank comes to mind, the American ‘salad bowl,’ which is the hinterland of agriculture.
Combined efforts of all sectors
Every industry of economic value and revenue-generation quality helped to advance California’s heightened GDP. However, agriculture was not counted among these sectors because it didn’t contribute to the state’s growth. This assertion was made by Irena Asmundson, the senior economist working in the Department of Finance in California.
The breakdown of each sector’s role in the advancement is as follows;
(I). Real estate and financial providers topped the rank of the biggest earners and contributors, with $26 billion.
(II). They were trailed behind by information industry. This includes a lot of firms that specialize in technology. Information industry grossed $20 billion.
(III). Third on the rank is the manufacturing sector that amassed at least $10 billion.
California gives an unlimited supply of jobs
The last time that California got to the fifth position in the ranking of world’s economy was in 2002. Unfortunately, it dropped to the 10th position a decade later in 2012 due to Great Recession. From then on, California, which is the state with the highest population in America, has amassed 2 million employment openings and developed its own GDP of $700 billion.
The economic productivity in California has currently gone beyond the whole American GDP, Japan, China, and Germany. The professionals in economy living in the state explained that it provided 16 percent of the job advancement in America. That was from 2012 to 2017. The share of California in the nation’s economy also advanced from 12.8 percent to 14.2 percent during the last 5 years.
Lee Ohanian, a professor of economics working in UCLA, also a director of UCLA’s Ettinger Family Program in Macroeconomic Research, attributes employees’ output to California’s solid economy. Ohanian said that the state’s success with respect to its other counterparts in industrialized places is pushed by the employees’ effective works. The economic steamroller in California is rooted in areas surrounding San Diego, Los Angeles, San Jose, and San Francisco.
In a response to questions concerning the issue, Ohanian noted that the areas in California, which are not part of the coast, are yet to accrue close to that figure in economic advancement when compared with their coastal counterparts.
An estimation was made by the state for the economic position of California. It was done in such a way that it was represented as a whole country. This was done by placing it side-by-side with the GDP grossed at the state standard and the world fiscal statistics gathered by the International Monetary Fund (IMF). The resources used were taken from the Bureau of Economic Analysis, collated by the American Department of Commerce and IMF data.
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