According to the federal data that was published on Friday, California has become the world’s fifth-largest economy. By doing so, the US state has surpassed the United Kingdom, who previously held the position. A number of reasons are given for the same. During the period between 2016 and 2016, there was an amazing increase of the GDP of California. Apparently, during the same period, UK’s GDP faced a notable decrease as well. California received an increase of $127 Billion, which played an important role in ensuring the position. There are also other reasons why California stays as one of the important economies in the world.
The US state is currently consisting of more than 40 million people, which is incredible. The impact of Silicon Valley, the land of entrepreneurship and technological transformation, the entertainment contribution by the Hollywood and the agricultural developments and consistency in Central Valley is also enhancing the total economy of California. Agriculture was the only sector that didn’t have an unnegotiable impact on the rise of GDP in the aforementioned period. In the past, California had held the same position, during 2002. It had lost the position following the Great Recession, but the state needed another 16 years to gain the place back.
Productivity of workers is one of the major reasons why California has acquired an amazing economy like it currently have. When compared to the other economies in the world, the workers in California seem to be more productive, in turn resulting in better profit. Even the United Kingdom, which happens to have more workers than California, has a smaller GDP, which notes the lack of productivity as well. Coastal metropolises of California have played an important role in enhancing and stabilizing the economy of California, especially San Francisco, Los Angeles and San Diego. The state is in further plans to enhance the economy.