California surpasses the UK as 5th biggest economy
11 May, 2018
California's economy has surpassed that of the UK to become the world's fifth largest, according to new data released by the US Department of Commerce. The state's GDP rose by $127bn from 2016 to 2017, surpassing $2.7tn, the data said. Meanwhile, the UK's economic output slightly shrunk over that time, when measured in US dollars, due in part to exchange rate fluctuations. All economic sectors except agriculture contributed to California's higher GDP, said Irena Asmundson, chief economist at the California Department of Finance. Financial services and real estate led the pack at $26bn in growth, followed by the information sector, which includes many technology companies, at $20bn. Manufacturing was up $10bn. The state has 12% of the US population but contributed 16% of the country's job growth between 2012 and 2017.
California last had the world's fifth largest economy in 2002 but fell as low as 10th in 2012 following the Great Recession. California's economic output is now surpassed only by the total GDP of the US, China, Japan and Germany.