04/24/2024

California the world’s fifth largest economy? Look out, Britain

Frustrated about unaffordable housing or clogged freeways? Think of it as the price you pay for living in one of the world’s largest economies.

California’s economy ranked sixth in the world in 2016, according to rankings released by Palo Alto economist Stephen Levy on Friday. That’s the same as the year before, when California overtook France and Brazil. But the state’s economy isn’t stagnating; California’s economy is growing so quickly that Levy thinks the state will overtake the United Kingdom this year for No. 5.

Levy, head of the Center for Continuing Study of the California Economy, said the rankings are evidence of the state’s vigor in the aftermath of the recession. As recently as 2010, the state had fallen to 10th in the rankings and some policymakers were wondering, “Are we losing our mojo?” Levy said.

More broadly, he said the rankings show the state is prospering despite a host of problems.

“It does say we’re doing well,” he said. “It does say that despite the housing, despite the transportation challenges and despite the air quality, we’re kicking (butt).”

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