With almost 40 million residents, California is the 5th largest economy in world, surpassing the United Kingdom.
According to data collected between 2016 and 2017, California’s GDP topped $2.7 trillion. The United Kingdom’s GDP shrank during that time.
This increase is a testament to the sheer breadth of the state’s economy.
What factors contribute to this growth? Firstly, it can be attributed to worker productivity, which economists say is quite strong. Second, California is the world’s entertainment center (Hollywood), the agricultural soul of America (Central Valley), and a hub of technological innovation (Silicon Valley).
However, while coastal regions are the biggest contributors to the state’s strong economic performance, inland counties typically do not generate as much economic growth.
Another trend that contributed to high economic performance is the marked decrease in the state’s poverty rate. In just five years, the rate of impoverished residents decreased by 17% – a metric topped by only three other states.