California Economy Surges to No. 6 in Global Rankings

Tuesday, June 21, 2016

(The Sacramento Bee)

We’re No. 6.

Riding the latest high-tech boom and an overall statewide surge, California has leapfrogged France and Brazil to become the world’s sixth-largest economy, according to figures released Tuesday by Gov. Jerry Brown’s administration.

Using data from the International Monetary Fund and the U.S. Bureau of Economic Analysis, the state Department of Finance said California jumped ahead two spots in the annual rankings in 2015, up from No. 8 the year before.

Economists cautioned against making too much of the global rankings, which seesaw from year to year and can be influenced by such factors as fluctuations in currency valuations. The strength of the dollar vs. the euro, for instance, was part of the reason why California jumped ahead of France last year.

Nonetheless, the numbers do reflect California’s comparatively healthy economy at a time when much of the rest of the world is struggling, said economist Jeff Michael of the University of the Pacific.

“It’s a statement of the size and significance of the state’s economy to the world, and the United States,” said Michael, director of the university’s Center for Business and Policy Research. “It speaks to California doing relatively well in a sluggish global economy.”

Read the full article here.

Category: Economic Development