California Now Fifth Largest Global Economy
Sacramento, CA — As California celebrates “Small Business Month,” federal data released today indicates that the state’s gross domestic product (GDP) has risen above the United Kingdom’s to claim a “Top Five” position among the world’s largest economies.
California’s GDP rose by $127 billion from 2016 to 2017 to surpass $2.7 trillion as Brexit — the UK’s plans to exit the European Union (EU) — decreased economic output over the period. California, whose ranking sank to 12th place in 2012, following the Great Recession, last reached the fifth spot back in 2002. Since 2012, the GDP has increased by $700 billion and the workforce has grown by two million jobs.
Today, in a proclamation declaring May “Small Business Month,” Governor Jerry Brown plugged the state’s latest ranking, pointing to its 3.8 million-plus small businesses – the most of any state across the nation.
Brown noted, “Our small businesses are respected globally for their innovation and fortitude…embody the entrepreneurial spirit that drives the economy of the Golden State, collectively making up 99 percent of all firms in California.” He also reaffirmed the commitment of Governor’s Office of Business and Economic Development and other key government agencies that work with and support small businesses’ growth and development
Economists at the California Department of Finance report that say all economic sectors except agriculture contributed to the state’s growth, led by financial services, real estate and the information sector, which includes technology companies.