California now ranked 5th largest economy in the world

SACRAMENTO, California - California is now the 5th largest economy in the world. That's according to new data released today by the U.S. Department of Commerce.

California's gross state product was $2.747 trillion between 2016 and 2017 according to the report.

State finance experts say the state hasn't been ranked as high as fifth since 2002; it has now surpassed the United Kingdom. In recent years the state was ranked the sixth largest economy in the world.

Economists say California's agriculture industry is still an important part of the state's economy, but the key drivers in recent years have been the tech industry, the housing market, and manufacturing.

"Agriculture has actually, that was the one sector in 2017 that did not add to GDP. These are in nominal terms so they're still doing fine, they are still a positive force for our economy but they just weren't growing very much," said Irena Asmundson with the State Department of Finance.

"A lot of it is technology. So some of the larger sectors, the largest one was finance and real estate, which is just very important in California of course.  But then professional business services and the information sector grew by quite a bit and that's where a lot of the technology firms are. So a lot of this is very much driven by Silicon Valley."

The United States is ranked first, followed by China, Japan and Germany.  Economists say California's rate of job growth is also significantly higher than the national average, with California at 2.6% and the national average at 1.8%.

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