California maintains its impressive standing as the 5th largest economy on the global stage, according to the latest data released by the International Monetary Fund (IMF) in its World Economic Outlook report for 2023. This continued economic prowess underscores California's pivotal role in the international economic landscape.
The state's nominal GDP surged to nearly $3.9 trillion in 2023, with a notable growth rate of 6.1% compared to the previous year, as reported by the U.S. Bureau of Economic Analysis (BEA). Governor Gavin Newsom emphasized California's exceptional performance, stating, "California continues to punch above its weight, overperforming all but a handful of the largest countries in the world."
California's economic might is driven by a unique blend of factors, including a culture of innovation, robust higher education institutions, a skilled workforce, diverse industry sectors, and abundant natural resources. These elements collectively contribute to the state's resilience and sustained economic growth trajectory.
On a per capita basis, California retains its distinction as the second largest economy globally, underscoring the state's economic significance relative to its population size.
In the broader context, the United States maintains its position as the world's largest economy, with a staggering nominal GDP exceeding $27 trillion. California is one of several U.S. states prominently featured in the top 20 economies worldwide, alongside Texas, New York, and Florida. Notably, Florida slipped to 19th place, overtaken by Spain in the latest rankings.
India, characterized by accelerated economic expansion, remains the sixth largest economy globally, having surpassed the United Kingdom in 2021.
