If California were a nation, it would be the fifth largest economy in the world. Soon, it may become the fourth.
The Golden State is on track to overtake Germany in fourth place, according to an opinion column from Bloomberg News Honorary Editor-in-Chief Matthew Winkler. It became the fifth largest economy in 2015, surpassing the United Kingdom, France and Brazil.
California Governor Gavin Newsom was quick to take the win on Monday afternoon.
“While critics often say California’s best days are over, reality proves otherwise — our economic growth and job gains continue to fuel the nation’s economy,” Newsom said in a statement. “California’s values and entrepreneurship are driving this rise to become the fourth largest economy in the world, and we will continue to multiply the industries of the future, such as renewables and clean energy. I feel very proud of California’s resilience, leadership, and our formula for success.”
Winkler’s column indicates that California’s corporate revenue stream is up 147%, while market capitalization has gone up 117% over the past three years, compared to 41% and 34% in Germany.
“Germany’s $4.22 trillion nominal GDP margin over California’s $3.357 trillion last year was the smallest ever and is on the verge of disappearing, with Europe’s largest economy barely growing in 2022 and expected to shrink in 2023,” Winkler wrote.
The Bloomberg column cited the difference between California’s top three industries (technology hardware, media, and software) all of which saw a significant increase in sales over the past three years, while Germany’s top three industries (health care, consumer discretionary spending, and industrial products) experienced marginal gains or declines. sales during the same period.
The column notes that California is “outstanding its weight on the world stage,” with job creation as a strong area of growth for the state.
Unemployment fell to 3.9% in July, although it rose to 4.1% in August.
The state’s 3.5% gap from the US national average is the narrowest since August 2021 and for the first time since 2006, California’s unemployment rate has fallen below Texas (the two states’ largest nonfarm payrolls), according to the column.
The column comes as California Republicans argue that Democratic politics are contributing to the state’s downward decline. They point to the exodus of middle-income people from the state as evidence that California’s high tax burden and housing prices are driving people away.
The California Business Roundtable released its own analysis of the Bloomberg article, arguing that the state’s rising cost of living is leaving residents behind.
He referred to the Ministry of Commerce index, which analyzes purchasing power between different regions. In this so-called price parity index, California’s GDP by purchasing power would make it the 11th largest economy in the world.
“California’s competitiveness is being hampered by the ongoing cost-of-living crisis. While the state’s GDP may be higher, the high and growing costs of housing, energy, food and other necessities mean that the dollar here is not going as far as in other countries,” the table statement said. round.
This story was originally published October 24, 2022, 4:26 p.m.
#California #fourth #largest #economy #world #Heres