California passes U.K. on global economic chart
California has reclaimed its spot as the world's fifth-biggest economy, passing the U.K. and trailing only the U.S. as a whole, China, Japan and Germany, the AP reports citing federal data.
Why it matters: "The data demonstrate the sheer immensity of California's economy, home to nearly 40 million people, a thriving technology sector in Silicon Valley, the world's entertainment capital in Hollywood and the nation's salad bowl in the Central Valley agricultural heartland. It also reflects a substantial turnaround since the Great Recession."
The details: "All economic sectors except agriculture contributed to California's higher GDP, said Irena Asmundson, chief economist at the California Department of Finance."
- "California's strong economic performance relative to other industrialized economies is driven by worker productivity, said [UCLA economics professor] Lee Ohanian... The United Kingdom has 25 million more people than California but now has a smaller GDP, he said."
By the numbers: "Financial services and real estate led the pack at $26 billion in growth, followed by the information sector, which includes many technology companies, at $20 billion. Manufacturing was up $10 billion."