It is true that California has grown to achieve the status of a world economy, compared to economies like Brazil or France that have achieved admirable progress over the last year. This US state has achieved the status of being the sixth largest economy in the world as per findings of 2015. The tech sector is still on the rise in this state as well as expansion being seen in other industries. As a result the state economy has moved up ahead of France and Brazil as per the findings in 2015. These are the findings of the Center for Continuing Study of the Californian Economy, for understand How US Economy Will Surpass The Challenges, Go Here. These reports reiterate the hope that US economy will bolster its growth rate this year.
The state gross product has risen to 2.5 trillion in US dollars by 2015. That is an increase by 4.1 percent as per the previous year when adjustments are made for inflation. This is more than the national growth rate, which was 2.4 percent. It has helped to bump up the gross domestic product for the country as a whole of $17.8 trillion.
Sector wise contributions
The tech sector has been the crucial one that has led growth for the state, but there are other contributing factors as well. The economists point out the reason for the growth has been due to a more even spread of growth in the state economy in all arts like Southern California that has picked up the pace akin to the Bay Area. This region has seen a record rise in tourism along with media related activities like television production, motion picture earnings and expand in the warehouse and port businesses as well. These growths have been recorded for financial year 2015 as per the survey.
Comparing with world economies
The growth of California state could also be termed phenomenal in a relative term. It is because of the recession that took over the world along with the turmoil that came by for the US government and a decline in earnings due to oil prices plummeting. Brazil also saw its GDP fall as there were fluctuations in the currency of the country. These factors also led to economic contraction in this region and led to comparatively highlight of the growth in the California state.
Today the US economy leads the way, followed by China. Japan follows after China, which is valued at $10.9 trillion, while Japan has third highest earnings of $4.1 trillion. Germany comes forth followed by the UK. Germany and Japan are strong economies in the global scenario, but both countries are seeing a rise in the elderly population due to which their earnings are on the decrease. It is also predicted that the UK will fall behind and go into recession as the second half of the year comes around. The main focus needs to be on the key factors and those are growth rate of jobs and unemployment being on the decline.