California About to Become the World’s 4th-Largest Economy
With many California companies outperforming their U.S. and international peers, the Golden State is poised to become the world’s fourth-largest economy. That was the projection delivered Monday by analyst Matthew A. Winkler in a Bloomberg opinion column. California Gov. Gavin Newsom, who faces challenger state Sen. Brian Dahle in the Nov. 8 election, quickly touted the analysis on social media.
California Attracts Talented People
Predictions about California’s demise are hardly a new phenomenon. But they’ve heated up in recent years because of the state’s wildfires, housing shortage, rise in the cost of living, and the appeal of low-tax states such as Texas to both families and businesses. But, Winkler writes, “California’s economy has proven relatively resilient, first through the pandemic and now through the current period of elevated inflation. So much so, that the Golden State’s gross domestic product is poised to overtake Germany’s as the fourth largest in the world after the US, China, and Japan.”
According to Winkler, the California economy is being turbo-charged by investments in renewable energy and the ability to attract talented entrepreneurs and employees. “We value innovation but we also value diversity and equity,” said Oakland Mayor Libby Schaaf. “It’s nice to see those values are economically rewarded because California was very much lambasted” during the Trump administration.
Golden State GDP at $3.35 Trillion and Growing
Economists calculated the state’s gross domestic product at $3.357 trillion last year. Although California’s new GDP won’t be known until 2023, estimates suggest the state may have already caught Germany. Winkler wrote that at least one forecast has California already ahead of Germany by $72 billion.