Business & Real Estate

California’s economy growing faster than national average

Two men have lunch at German software maker SAP's HanaHaus cafe and community workspace in Palo Alto. Technology was one of the sectors that helped drive California’s 2016 economic growth.
Two men have lunch at German software maker SAP's HanaHaus cafe and community workspace in Palo Alto. Technology was one of the sectors that helped drive California’s 2016 economic growth. AP file

California’s economy grew faster in 2016 than all but a few other states, outpacing the average national growth for the sixth consecutive year, according to data released Thursday by the U.S. Bureau of Economic Analysis.

California’s real gross domestic product – the value of all goods and services produced in the state, adjusted for inflation – rose by 2.9 percent from 2015 to 2016. By comparison, national GDP grew by 1.5 percent. The state’s economy grew by 2 percent in 2013, 3.7 percent in 2014 and 4.4 percent in 2015, federal data show.

Only the economies of Oregon, Washington, Georgia, Florida, Utah and New Hampshire grew faster than California’s last year. In California, the information technology, government, health care and real estate sectors drove much of the 2016 growth.

California contributes more to the nation’s economy than any other state. About 14 percent of the nation’s GDP comes from California. Put another way, if California wasn’t growing fast, the national rate of growth would be lower.

 

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Phillip Reese: 916-321-1137, @PhillipHReese

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