The state of California, United States, is now ranked as the fifth largest economy in the world – surpassing that of the United Kingdom. While it is only a state of the US, it has a GDP of $2.7 trillion, which grew by $127 billion between 2016 and 2017. In this same period, the GDP of the UK slightly decreased, mainly due to the fluctuation of the US dollar.
California, home to 26 million fewer people than the UK – sitting at a population of just 39.5 million – owes its growing GDP to flourishing economic sectors. The real estate sector in California grew by $26 billion, while the information sector – containing many technology companies – grew by $20 billion. The manufacturing sector grew by $10 billion, while agriculture had little impact on the GDP growth. Aiding the GDP growth was the world’s entertainment capital; Hollywood, and the technology hub Silicon Valley.
California was in fifth place in 2002, however due to the Great Recession in 2012, it fell to tenth place. Within the past six years California has grew more than $700 billion in GDP and added more than 2 million jobs. The majority of this growth has come from the coastal areas, with little growth provided by inland areas.
Despite the US having 50 states, California contributes 1/7th of the entire United States’ GDP, or 14.2%. The state’s economic output is only beaten by the US, China, Japan, and Germany.