California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The economic output of states for 2008 illustrated an obvious downturn.  The growth
of the Gross Domestic Product, GDP by state was released this week by the Commerce
Department. Economic output slowed in 38 states as downturns in the housing industry,
coupled with financial services and manufacturing faltered. The growth in gross
domestic product by state slowed sharply, falling from 2 percent in 2007 to 0.7 percent
in 2008. Last year represented the fourth year in a row when the growth rate of GDP by
state continued to decline from its cyclical peak of 3.5 percent in 2004. Twelve of
the 38 states experienced outright declines in GDP last year, but not California.

California eked out a 0.4 percent growth helped in part by the technology sector of
its economy.

As it pertains to comparing California’s economy to the nation’s of the world, using
the data from the World Fact Book from the CIA, California would rank 10th  in the
world in terms of largest economies.  This might be viewed as a decline in its previous
status, but it has been joined by the emerging markets of Brazil and Russia. 

In 2007, the U.S. Bureau of Economic Analysis identified California’s GDP at $1.727
trillion. In calculating the increase, for 2008 it would make the state’s estimated
GDP 1.8 trillion making it the 10th largest economy in the world just behind Brazil
and even with Italy. 

WORLD’S LARGEST GDP’S

USA
China
Japan
India
Germany
United Kingdom
Russia
France
Brazil
Italy
Spain
Mexico
Canada
South Korea
                Source:  2008 World Fact Book, CIA

California’s GDP is very close in size to those of the United Kingdom, Russia, France
and Brazil’s and Italy’s.

I am Tim Johnson and this has been the California Business Minute.