California ranks as world’s fifth-largest economy again
For the seventh consecutive year, California has maintained its standing as the world’s fifth-largest economy, according to data released on Tuesday.
Despite the ongoing challenges posed by the COVID-19 pandemic and widespread layoffs, the state’s economic prospects remain robust, according to the International Monetary Fund’s annual World Economic Outlook report.
In 2023, California boasted a nominal GDP of nearly $3.9 trillion, marking a growth rate of 6.1% from the previous year, U.S. Bureau of Economic Analysis data shows. This places California behind only four national economies: the United States ($27.4 trillion), China ($17.7 trillion), Germany ($4.4 trillion) and Japan ($4.2 trillion).
On a per capita basis, California ranks as the world’s second-largest economy, a feat achieved thanks to its diverse range of industries, including technology and entertainment, and a strong drive for entrepreneurship.
“California continues to punch above its weight, overperforming all but a handful of the largest countries in the world,” Gov. Gavin Newsom said in a statement. “And with our unparalleled combination of innovation, higher education, a talented workforce, diverse industries, and unparalleled natural resources, we will continue to do so well into the future.”
Among the top 20 global economies, Texas, New York and Florida also represent the United States. However, Florida slipped to the 19th spot in the latest rankings, being overtaken by Spain.
The report also offered some unexpected insights, with the global economy demonstrating greater resilience than expected despite recent geopolitical and economic upheaval, defying recession predictions.
India’s economy, in particular, is on a fast track. Since surpassing the United Kingdom in 2021, it has held its position as the sixth-largest economy and could potentially overtake California in the rankings soon.
The IMF’s forecast projects that India’s economy will continue its rapid growth while the rest of the world faces a more modest pace. The baseline forecast for growth in the global economy is 3.2% during 2024 and 2025, the same pace as in 2023, but India is projected to grow at 6.8%.
In the United States, growth is expected to increase from 2.5% in 2023 to 2.7% in 2024, while China’s economy is predicted to slow to a growth rate of 4.6% in 2024, down from 5.2% the previous year.