California retains its position as the world's 5th largest economy, with a nominal GDP of nearly $3.9 trillion in 2023, according to the International Monetary Fund (IMF) report. The United States has the largest economy with a nominal GDP of $27.36 trillion in 2023. China is the second-largest economy with $17.66 trillion, followed by Germany with $4.4 trillion and Japan with $4.2 trillion [ce7e71d7].
California's economy grew by 6.1% in 2023, the highest among all states. Texas had the second-largest economy with $2.56 trillion, and New York had the third-largest with $2.15 trillion [ce7e71d7]. Despite challenges like the pandemic and companies moving out of the state, California's high population, pandemic-resistant industries, and diverse growth areas have contributed to its economic resilience. Governor Newsom highlighted California's combination of innovation, higher education, talented workforce, diverse industries, and natural resources as factors for its economic success [ce7e71d7]. Economists also noted that despite high taxation and regulations, California offers numerous opportunities for businesses to succeed and grow in various industries [ce7e71d7].
California's economy is approximately 14% of the total U.S. economy [ce7e71d7]. More studies on California's economic situation are expected.
In addition to its economic success, California faces challenges related to income inequality. According to a report by the OCRegister, California has the largest wage gap between the upper and lower halves of the pay scale compared to any other state in the US. The pay gap in California is 146%, which is higher than the national average of 108% [453bc86a]. The state's 75th percentile pay, which represents the mid-point of the upper half, is $93,250 per year, ranking it third in the US. However, the cost of living in California is high, and the median household income needed to afford the median-priced home is $208,000, more than double the 75th percentile wage. As a result, only 16% of households in California can afford to buy a home [453bc86a].
Despite the wage gap challenges, California's economy continues to thrive due to its diverse industries, innovation, and talented workforce. The state's economic growth and resilience have helped it maintain its position as the world's 5th largest economy.
According to a report by Yahoo Finance, California is one of the seven richest states in the US. The other six states are Texas, New York, Florida, Illinois, Pennsylvania, and Ohio. California has a GDP of $872.748 billion, GDP per capita of $74,050, and a population of 11.73 million. The cost of living in California is 8% lower than the national average. Texas has a GDP of $965.067 billion, GDP per capita of $74,450, and a population of 12.96 million. The cost of living in Texas is 4% lower than the national average. New York has a GDP of $1,082.968 billion, GDP per capita of $86,290, and a population of 12.47 million. The cost of living in New York is 8% lower than the national average. Florida has a GDP of $1,579.503 billion, GDP per capita of $69,860, and a population of 19.795 million. The cost of living in Florida is 2% lower than the national average. Illinois has a GDP of $1,579.503 billion, GDP per capita of $109,970, and a population of 19.795 million. The cost of living in Illinois is 27% higher than the national average. Pennsylvania has a GDP of $2,563.508 billion, GDP per capita of $84,040, and a population of 30.3 million. The cost of living in Pennsylvania is 7% lower than the national average. Ohio has a GDP of $3,862.171 billion, GDP per capita of $99,120, and a population of 38.9 million. The cost of living in Ohio is 38% higher than the national average [ce59087b].