We have been lamenting the many challenges California’s economy confronts for a long time in this space.
But let’s take a moment to think about how, in spite of these obstacles, business ventures of all kinds generate enormous amounts of economic activity throughout the state.
My trusty spreadsheet looked at the just-released 2023 edition ofGross Domestic Product figures by county, as the US Bureau of Economic Analysis tallied. According to this local business output survey, 57 US counties generated at least $100 billion in goods and services in 2023.
There were ten of them in California. Not a single state had more.
With six counties in this club, New York, Texas, and Florida were the closest. New Jersey followed with four, followed by Pennsylvania and Ohio with three.
Club membership
According to GDP calculations, Los Angeles was the most business-friendly county in the country.
The LA economy, which includes manufacturing, shipping, Hollywood, and a sizable service sector, produced $962 billion worth of products and services in 2023.
What size is that? According to International Monetary Fund GDP statistics in US dollars, that output is roughly equivalent to what is produced in Switzerland. According to BEA state GDP data, the business scene in Los Angeles is just as large as that of Pennsylvania.
Additionally, LA generates more GDP than all 1,591 of the country’s smallest counties put together.
Despite this, LA’s economy appeared weak last year. With a GDP increase of only 1% after inflation, it ranked 47th out of these 57 massive county economies.
Santa Clara County was the next-largest member of the club in California. With a GDP of $420 billion in 2023, it ranked sixth in the country, comparable to Wisconsin or Denmark.
With 3.4% growth in 2023, this tech-driven economy appeared more robust and ranked 19th overall.
Now consider the eight other supersize county economies in the state that are listed.
Orange: $334 billion, No. 9, or about the same as South Carolina or the Czech Republic. Only 0.5% increase was achieved by business clusters ranging from real estate to tourism (No. 54).
San Diego: No. 10: about Finland or Louisiana, $315 billion. The medical industry contributed to a 1.4% growth in the economy (No. 41).
San Francisco: $263 billion, approximately Oklahoma or Peru, No. 11. This location for IT, finance, and headquarters grew by 3.2% (No. 21).
San Mateo: 203 billion, No. 15, approximately Nebraska or Hungary. Among the largest US counties, the GDP of this tech cluster in the Bay Area surged by 7.7%.
Alameda: $179 billion, No. 19, about Arkansas or Ukraine. Known for its technology, colleges, and Tesla plants, the economy expanded by just 0.6% (No. 52).
San Bernardino: $131 billion, No. 37, approximately in the Slovak Republic or New Mexico. The business scene, which is heavily reliant on logistics, grew by 0.9% (No. 50).
Riverside: No. 41, approximately Idaho or the Dominican Republic, $126 billion. Another economy with a concentration on logistics grew by 1.4% (No. 41).
Sacramento: No. 42, approximately Idaho or the Dominican Republic, $126 billion. The government-centered economy in the state capitol grew by 2.7% (No. 27).
Bottom line
As I’ve stated previously, policymakers should keep in mind that California’s enormous economic scale does not shield it from business unrest, whether it be self-inflicted injuries or widespread gyrations.
Just think about the growth in 2023.
The combined GDP of California’s ten largest counties was $3 trillion, growing 2% annually after inflation. With a total GDP of $9 trillion, the remaining 47 massive US counties grew by 2.7%.
Postscript
Using GDP statistics, many boast that California’s economy would rank sixth in the world.
The Golden State, however, continues to hold that ranking according to the most recent data.
The state of California’s GDP was growing at a rate of $4.1 trillion as of June 2024. It lags behind Japan, China, Germany, and the United States.
However, India’s rapidly expanding economy is catching up. India’s 2024 output was projected by the IMF to be $3.9 trillion, only $200 billion of GDP away, in October.
The Southern California News Group’s business columnist is Jonathan Lansner. His email address is [email protected].
2024’s most read columns by me
- No. 1: It takes $349,200 income to buy an Orange County home, 3.5 times the US salary
- No. 2: 20 least-affordable US cities to buy a home are all in California
- No. 3: Resort at Pelican Hill switching to Marriott management, St. Regis brand
- No. 4: California has 13 of the most unaffordable small US cities
- No. 5: Temecula ranked as one of 50 best places to live in US
- No. 6: 3 Southern California communities among fastest-selling home projects in US
- No. 7: Finally, Bass Pro Shops Outdoor World opens in Irvine
- No. 8: California auto insurance premiums soaring 54% this year
- No. 9: Laguna Niguel s Ziggurat building in $150 million-plus bidding war
- No. 10:
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!
Where is California s hardest spot to find an apartment?
