We’ve spent important time on this house bemoaning the quite a few hurdles California’s financial system faces.
However for a second, let’s think about how, regardless of such challenges, enterprise endeavors of all kinds statewide create huge sums of financial exercise.
My trusty spreadsheet regarded on the just-released 2023 version of Gross Home Product stats by county, because the US Bureau of Financial Evaluation counted. This native tally of enterprise output discovered that 57 US counties produced $100 billion or extra of products and companies in 2023 {dollars}.
Ten of them had been in California. No state had extra.
The closest had been New York, Texas and Florida with six counties on this membership. Then got here New Jersey with 4, and Ohio and Pennsylvania with three.
Membership membership
The nation’s most prolific county for enterprise, by GDP math, was Los Angeles.
The LA financial system – crammed with all the things from an enormous service trade to manufacturing, transport, and Hollywood – created $962 billion price of products and companies in 2023.
How massive is that? That output is loosely equal to what’s produced in Switzerland, utilizing Worldwide Financial Fund stats on GDP in US {dollars}. LA’s enterprise scene can be as massive as Pennsylvania’s, based on BEA state GDP figures.
LA additionally creates as a lot GDP because the nation’s 1,591 smallest counties mixed.
Heft apart, LA’s financial system regarded meek final yr. Its GDP progress after inflation was minimal – a mere 1%, rating No. 47 of those 57 big county economies.
California’s next-largest member of the membership was Santa Clara County. Its $420 billion GDP in 2023 was the sixth highest nationally, on par with Denmark or Wisconsin.
This tech-centric financial system regarded perkier, with 3.4% progress in 2023, rating Nineteenth-best.
Now take into consideration the state’s eight different supersize county economies on the listing …
Orange: $334 billion, No. 9 – or roughly the identical because the Czech Republic or South Carolina. Enterprise clusters from actual property to tourism mustered simply 0.5% progress (No. 54).
San Diego: $315 billion, No. 10 – roughly Finland or Louisiana. An financial system highlighted by medical work grew by 1.4% (No. 41).
San Francisco: $263 billion, No. 11 – roughly Peru or Oklahoma. This spot for headquarters, monetary and tech had 3.2% progress (No. 21).
San Mateo: $203 billion, No. 15 – roughly Hungary or Nebraska. This Bay Space tech hub’s GDP grew 7.7%, tops among the many big US counties.
Alameda: $179 billion, No. 19 – roughly Ukraine or Arkansas. The financial system, recognized for faculties, science, and Tesla factories, grew by solely 0.6% (No. 52).
San Bernardino: $131 billion, No. 37 – roughly New Mexico or the Slovak Republic. The logistics-heavy enterprise scene expanded by 0.9% progress (No. 50).
Riverside: $126 billion, No. 41 – roughly Idaho or Dominican Republic. One other logistics-focused financial system had 1.4% progress (No. 41).
Sacramento: $126 billion, No. 42 – roughly Idaho or Dominican Republic. The state capitol’s government-centered financial system had 2.7% progress (No. 27).
Backside line
As I’ve mentioned earlier than, policymakers ought to keep in mind that California’s immense financial dimension doesn’t insulate it from enterprise turmoil – whether or not that’s broad gyrations or self-inflicted wounds.
Simply meditate on 2023’s progress.
California’s 10 massive counties collectively created $3 trillion in GDP – up 2% a yr after inflation. The opposite 47 big counties from elsewhere within the US, with $9 trillion in GDP, grew a mixed 2.7%.
Postscript
Many people brag that California’s financial system can be the world’s fifth-largest, utilizing GDP stats.
Effectively, utilizing the newest information, the Golden State retains that rating.
As of June 2024, California’s statewide GDP was operating at a tempo of $4.1 trillion. That trails the US, China, Germany and Japan.
However No. 6 India’s fast-growing financial system is catching up. The IMF estimates introduced in October estimated India’s 2024 output at $3.9 trillion – simply $200 billion price of GDP away.
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