In the third quarter of 2020, real GDP increased in all 50 states and the District of Columbia. According to the Bureau of Economic Analysis, the United States’ overall real GDP expanded at a rate of 33.4 percent each year. The annual growth rate of real GDP in each state ranged from 19.2 percent in D.C. to 52.2 percent in Nevada. In the second quarter of 2020, real GDP decreased significantly in all 50 states and D.C., ranging from -20.4 percent in D.C. to -42.2 percent in Hawaii and Nevada.
The considerable increases in GDP from Q2 to Q3 indicate ongoing attempts to reopen enterprises and resume economic activity that had been halted due to the COVID-19 outbreak. Healthcare and social assistance, durable goods manufacturing, and lodging and food services were the biggest contributors to the increase in real GDP at the national level. Healthcare and social aid grew at a rate of 75.1 percent nationwide, and was the largest contributor in 26 states.
California ($3,120,386), Texas ($1,772,132), New York ($1,705,127), Florida ($1,111,614), Illinois ($875,671), Pennsylvania ($788,500), Ohio ($683,460), Washington ($632,013), Georgia ($627,667), and New Jersey ($625,659) are the ten states with the highest GDPs (in millions of dollars). California, Texas, New York, and Florida are the four states that contribute more than $1 trillion to the US GDP. With a GDP of $3,120,386,000,000, California has the highest GDP of any state, accounting for nearly 14.7 percent of the country’s overall GDP. With $1,772,132,000,000 in GDP, Texas is in second place, accounting for 8.4% of the country’s total.
What is the GDP of California in 2020?
California’s gross domestic product (GDP) was around 3.09 trillion dollars in 2020, making it the state that contributed the most to the country’s GDP that year. Vermont, on the other hand, had the lowest GDP in the country, with 32.8 billion dollars.
What is the primary source of income in California?
The state’s primary revenue source is the personal income tax; the property tax is the most important local tax; and the sales and use tax benefits both the state and local governments. Furthermore, a slew of lesser levies help fund state and municipal government activities.
What percentage of the US economy does California contribute?
California’s economy is the largest in the United States, with a gross state product (GSP) of $3.0 trillion in 2020. California would be the world’s fifth largest economy in 2020 if it were a sovereign nation, ahead of the United Kingdom and India but behind Germany. In addition, Silicon Valley is home to some of the most valuable technology businesses in the world, including Apple, Alphabet Inc., and Meta Platforms. In 2018, California had the highest concentration of Fortune 1000 businesses of any state, with over 10% of the total.
California’s economy is broad, with several large industries, as it is both the most populated and one of the most climatologically diverse states in the United States. Finance, business services, government, and manufacturing are the most dominant of these industries. Much of the economic activity is concentrated in the coastal cities, particularly Los Angeles, which is known for its mediamost notably Hollywoodand the San Francisco Bay Area, which is known for its technology. Both towns, as well as other large ports such as San Diego, serve as important commerce hubs for goods entering and leaving the United States. Furthermore, the Central Valley of California is one of the most productive agricultural regions on the planet, producing more than half of the country’s fruits, vegetables, and nuts.
Is the economy of Texas or California larger?
The most recent statistics available from the US Census Bureau shows that California’s state and local governments spent $16,145 per state resident in 2019. Texas residents spent only $10,024 on average. The median household income in California was $16,879, while in Texas it was $9,997.
California’s GDP per capita ($79,405) is 22% higher than Texas’ ($65,077), although California’s per capita GDP is largely derived from the public sector, which is one-third larger than Texas’.
See also: ‘Strangling local governments’: What happens when governments and cities oppose each other?
Education was the most expensive area of state and local spending in Texas, while social services and income maintenance, which largely comprises Medicaid spending, was the most expensive category in California. According to the study, one out of every three California residents is enrolled in Medicaid, compared to only 16% of Texas citizens.
Is California prosperous?
Using median household income to determine which states are the wealthiest looks very different. Because population has a significant impact on GDP, the states with the highest GDPs tend to be the largest, as shown below. Except for Florida and New York, three of the five richest states’ GDPs correspond to their population ranks. While New York has the third-largest GDP, Florida has the fourth-largest population. For comparison, we’ll also highlight their different median earnings.
California
California, with a GDP of $3,120,386,000, is the most populous state in the country. California has the sixth highest median household income in the country, at $80,440.
Texas
Texas, the country’s second-largest state by population, is also the country’s second-richest state in terms of GDP. The state of Texas has a GDP of $1,772,132,000. The median household income in Texas is $64,034, which is slightly lower than the national average.
New York
With a GDP of $1,705,127,000.0, New York is the third-richest state in the United States. With a median household income of $72,108, New York ranks 15th among all states.
What is the largest industry in California?
California has one of the most developed economies in the country. If the economy of this country were compared to that of the rest of the globe, it would rank fifth, as it competes favorably with countries like Japan, Germany, and China. California has a $3 trillion GDP, according to the Bureau of Economic Analysis. It is known as the Golden State and accounts for 14 percent of the US GDP. It also has one of the largest workforces in the United States, with 14 million workers. The presence of various technology-intensive manufacturing companies, as well as a thriving film industry, is linked to California’s industrial success. Healthcare, construction, technology, hospitality, and agriculture are the fastest-growing industries in the state. Agriculture, the film industry, and the services sector are, nonetheless, the most important industries in California (including tourism).
Global Trade Facts
As of January 2022, the world’s population is 7.8 billion people. Every second, 4.3 births and 1.9 deaths are projected in the world as of January 2019. (Source: United States Census Bureau, February 2019)
The World Trade Organization (WTO) analyzed why the interconnected global trading system is sensitive and resilient to crises like the COVID-19 pandemic in its 2021 World Trade Report. The epidemic caused significant economic recession at first, but supply networks have now adjusted and many countries have begun to recover. During the epidemic, the global trading system provided flexibility, diversification, and strength, according to the WTO.
The value of global commerce in products and services fell by 9.6% in 2020, according to the research, despite an almost 50% increase in trade in medical supplies. The global gross domestic product (GDP) decreased by 3.3 percent, the largest drop since World War II. The outlook for the future is significantly more positive. The World Trade Organization (WTO) forecasts a 5.3 percent increase in global economic production in 2021, owing in part to a strong recovery in merchandise trade, which is likely to increase by 8%. However, service trade remains stagnant.
The WTO’s positive barometer predicted a big trade comeback in February 2021, following a deep drop in trade due to the COVID-19 epidemic. According to the barometer, trade expansion is likely to decline in the first half of 2021. Due to the introduction of novel COVID-19 variations and the efficacy of immunization attempts, the outlook for 2021 is uncertain.
The news got even better in March 2021, when the World Trade Organization predicted that the volume of global merchandise trade will increase by 8% in 2021, after declining by 5.3 percent in 2020. This has boosted the chances of a speedy recovery. After that, trade growth is predicted to decrease to 4% in 2022. However, the rate of expansion is still slower than it was before the pandemic. (March 2021, World Trade Organization)
In their 2020 World Trade Report, the World Trade Organization took into account the global coronavirus epidemic, which has produced unprecedented international uncertainty. Global trade has endured its greatest decline since the 1930s, with predictions that trade will be down 13% to 32% in 2020 compared to the previous year.
The research emphasized the significance of international cooperation during this time to maintain markets open for products and services, as well as to protect public health and re-energize global economic activity. Director General Roberto Azevdo indicated in the spring of 2020 that he would be stepping down in August to allow for the appointment of a new Director General before the 12th ministerial conference in 2021. Along with this transition, the WTO is also undergoing reform debates, with the goal of equipping the WTO to assist to the economic recovery of all of its members in the event of a pandemic.
U.S. Trade Facts
Imports of goods and services totaled $3.387 trillion in 2021, with items accounting for $2.832 trillion and services accounting for $555 billion. Industrial supplies and materials imports climbed by $169.7 billion, consumer goods by $126.8 billion, capital goods by $117.5 billion, automotive cars and parts by $36.8 billion, and food and beverage imports by $27.8 billion.
Exports of products and services totaled $2.528 trillion in 2020, with individual goods exports being $1.75 trillion and service exports totaling $775 billion. Industrial supplies and materials exports climbed by $169.6 billion, capital goods exports by $59.3 billion, consumer goods exports by $47.3 billion, food and beverage exports by $25.9 billion, and automotive vehicle and component exports by $15.7 billion.
The goods and services deficit in the United States increased to 3.7 percent of GDP in 2021, up from 3.2 percent in 2020. (According to the Bureau of Economic Analysis)
According to the Bureau of Economic Analysis, the United States has the world’s largest economy, with a GDP of $23.99 trillion. As of December 2021, the United States’ population is estimated to be at 331.89 million people. The population has increased by 0.13 percent since Census Day (April 1, 2020) to the December 2021 number.
In Fiscal Year 2016, every dollar appropriated to the US Commercial Service returned to the American economy in the form of increased exports ($56.2 billion) and foreign direct investment ($5.3 billion), supporting nearly 300,000 employment.
From 2010 to 2016, the US Commercial Service assisted American companies and communities in achieving approximately $300 billion in exports and over $23 billion in foreign direct investment, sustaining an estimated 1.7 million jobs in the United States.
According to a Business Roundtable research from 2020, foreign trade practices support more than 40 million employment in the United States, or one out of every five. Since NAFTA’s introduction in 1992, the number of jobs in the United States that are dependent on international commerce has more than doubled, reaching 20% in 2018.
Canada ($307 billion, a 16.8% rise), Mexico ($276.45 billion, a 23.5 percent increase), China ($151.06 billion, a 17.59 percent increase), Japan ($74.97, a 14.96 percent increase), and South Korea ($65.77, a 22.5 percent increase) were the top export markets for US goods in 2021.
According to the Bureau of Economic Analysis, foreign direct investment expenditures in the United States for the acquisition, establishment, or expansion of U.S. enterprises reached $120.7 billion in 2020, down 45.4 percent from $221.2 billion in 2019. Manufacturing had the highest expenditures for new direct investment, totaling $63.3 billion and accounting for 52.4 percent of overall expenditures. Chemical production and computer and electronic items have the highest expenditures within manufacturing. Large sums were also spent in the information industry, particularly in telecommunications.
Germany was the greatest investor in the United States, with $20.5 billion, followed by Canada with $15.2 billion and Switzerland with $13.8 billion. In 2020, Europe accounted for more than two-thirds of all new investment.
California received the second-highest amount of funding, totalling $17.8 billion. (According to the Bureau of Economic Analysis)
According to statistics issued in August 2021, international multinational businesses’ majority owned U.S. affiliates (MOUSAs) employed 7.95 million workers in the United States in 2019, up 1.1 percent from 2018. Majority-owned U.S. affiliates employed 6% of the total private-industry workforce in the United States. The manufacturing and retail trade industries employed the most MOUSAs. The largest contributors to overall MOUSA employment were MOUSAs with ultimate beneficial owners in the United Kingdom, Japan, and Canada. (According to the Bureau of Economic Analysis)
California Trade Facts
California exports totaled $175.12 billion in 2021, according to the US Department of Commerce. This represents a 12.4 percent increase over the sum of $155.8 billion in 2020.
California exports to FTA markets stood for 41.4 percent of total exports in 2021. In 2021, California exported $72.5 billion to FTA partners. (ITA)
In 2021, California exports accounted for about ten percent of total US exports. More than 1 million Californians are employed as a result of California exports. International trade, including exports and imports, supports almost 5 million jobs in California, accounting for one out of every four jobs.
The total amount of new foreign direct investment into California in 2019 was $45.49 billion. In 2019, 44,300 people were employed by newly acquired, started, or expanded foreign-owned firms (Bureau of Economic Analysis). Software & IT services, business services, communications, financial services, and industrial equipment were the leading FDI industries in California. Twenty percent of FDI in California came from the United Kingdom, nine percent from Germany, eight percent from Canada, seven percent from Japan, and seven percent from China. (Select the United States of America)
Computers, non-electrical machinery, chemicals, transportation equipment, and agricultural items are among California’s main exports. California’s largest export is computers and electronic products, which will account for 22.6 percent of the state’s total exports in 2021.
According to a research conducted by the Consumer Technology Association, California had over three million jobs directly and indirectly related to consumer technology in 2017, with many of them stemming from consumer tech exports.
Non-electrical machinery and chemicals were also among the top export sectors, accounting for 11.6 percent and 10% of total exports, respectively.
Mexico remains California’s most important export market. In 2021, California exported $27.23 billion to Mexico. In comparison to 2020, exports increased by 13.22%. Mexico buys 15.5 percent of California’s total exports.
Computer and electronic products drive California’s exports to Mexico, accounting for 17.9% of all California exports to Mexico. Transportation equipment, non-electrical equipment, and chemicals were also among the top categories.
Canada is California’s second-largest export market, accounting for 10.2% of total exports. California exported about $17.89 billion to Canada in 2021.
Computers and electronic equipment remained California’s most important exports to Canada, accounting for 26% of all exports to the country.
After Texas, California is the second-largest exporter to Asia. California exported $76.48 billion worth of goods to the region in 2021.
In 2021, California exported $16.7 billion to mainland China. Non-electrical machinery has overtaken computers and electronic products as China’s most important export, accounting for 22.8 percent of total exports.
In 2021, California’s exports to Hong Kong totaled $6.7 billion, up from $6.3 billion in 2020, maintaining its position as the state’s eighth largest export market.
In 2021, California exported $11.86 billion to Japan. 16.15 percent of total exports were computers and electronic items.
South Korea remained California’s No. 5 commercial partner in 2021, with the state exporting $11.62 billion to the country. Non-electrical machinery accounted for almost 32.3 percent of the total.
California exported $27.42 billion to the European Union (27) in 2021. California is a leading exporter to Europe.
California’s top export sectors to the region are computers and electronic items, chemicals, agricultural products, and transportation equipment. About 15.66 percent of all California exports are purchased by European Union countries.
What products is California known for?
California grows nearly 200 distinct crops, some of which are unique to the United States. Grapes, for example, are among the crops grown.
Almonds, strawberries, oranges, and walnuts are all delicious.
Almonds, apricots, dates, figs, kiwi fruit, nectarines, and nectarines are all grown in California.
olives, pistachios, prunes, and walnuts are a few examples. Avocados, grapes, lemons, melons, peaches, and plums are among the fruits grown there.
as well as strawberries Only Florida produces more oranges than the rest of the country.
Lettuce and tomatoes are the most important vegetable crops farmed in the state. California is once again in the lead.
the path Broccoli and carrots are the next most popular vegetables, followed by asparagus, cauliflower, celery, garlic, mushrooms, onions, and peppers.
peppers. Texas is the only state that grows more cotton than California.
What makes California’s economy so large?
While it is not the most populous state in the country, no one can deny the state’s economic significance. The economy of California is diversified. Technology, trade, media, tourism, and agriculture are the dominant industries.
The two most prosperous economic districts are those surrounding Los Angeles and San Francisco, with the former being driven by media, commerce, and tourism and the latter by technology, trade, and tourism. While California is the nation’s top agricultural producer, agriculture accounts for less than 2% of the state’s GDP. “California agriculture is a $49 billion business that generates at least $100 billion in associated economic activity,” according to the California Department of Food and Agriculture.
Here is how California’s economy contributes as a proportion of the total if we were to classify it by its many industries.