Report: California slips to world's 9th largest economy
Center for Continuing Study of the California Economy: California's Bay Area had a larger economy than Switzerland in 2010.
January 13th, 2012
08:20 PM ET

Report: California slips to world's 9th largest economy

California has long had an economy larger than most nations, but nominal growth has once again seen it slip on the top 10 list.

The state dropped to ninth on the list of world’s largest economies as measured by gross domestic product in 2010, according to a report this month from the Center for Continuing Study of the California Economy.

Brazil, with a 2010 GDP of $2.1 trillion, took the eighth spot from California ($1.901 trillion). India was 10th, at $1.7 trillion.

The United States, including California, was top of the list at $14.5 trillion. China ($5.9 trillion), Japan ($5.5 trillion), Germany ($3.3 trillion) and France ($2.6 trillion) rounded out the top five.

The United Kingdom ($2.2 trillion) and Italy ($2.1 trillion) were sixth and seventh, respectively.

In the early 2000s, California was fifth in terms of GDP, which is the value of its goods and services. But slow growth – 1.7% annually since 2000, adjusted for inflation – has helped faster-growing countries catch up.

The U.S. annual growth rate of 1.6% during that period was slightly lower than California’s.

Stephen Levy, Center for Continuing Study of the California Economy director and senior economist, said the California-Brazil swap is more about Brazil rising than California falling. Brazil’s vast population advantage (190 million to California’s 37 million) and the increasing prices of commodities that Brazil exports are just part of the country’s rise, he said.

“There’s a number of countries that are embracing the technology that … has (been) developed, and they’re in a growth mode,” Levy said. "Exports and rising prices, yes, but generally they’re having great economic gains.”

Levy said California’s economy could soon surpass Italy’s, because of  a recession in Italy and a falling euro.

California’s economy is the largest of the 50 states. Texas ($1.207 trillion) and New York ($1.16 trillion) are next.

California’s 2010 GDP is a U.S. Department of Commerce estimate. The nations’ GDP figures come from the World Bank.

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Filed under: California • Economy
soundoff (75 Responses)
  1. drap

    Wonder where Californias economy would rank without Hollywood... .?

    January 13, 2012 at 9:46 pm | Report abuse | Reply
  2. Hey Zooz the gardner

    Hollywood dont like my leafblower!!!!

    January 13, 2012 at 9:55 pm | Report abuse | Reply
  3. elreyjones

    California has become a thrid world cesspool. There is no way it can ever recover to its glory days 60 years ago.

    January 13, 2012 at 9:57 pm | Report abuse | Reply
    • Sylmar

      Ever hear the saying "As California goes, so goes the nation" ? I have a feeling that your statement is based more on your political feelings vs your economic savvy. Anyway, I hope you are wrong!

      January 13, 2012 at 10:32 pm | Report abuse |
  4. Philip

    @hamsta. Huh. How arrogant of puny little man to think he can alter the earths course. While global average temperatures are in fact on the rise, the only thing our pollution has done is offer shade from the heat. Water has been taking longer and longer amounts of time to evaporate since the industrial revolution began over 100 years ago due to the shade of pollution. Evaporating water is what drives the weather. The earth is experiencing a natural change to warmer weather. Our pollution has just made what would have been a gentle change into one with violent weather extremes. (not counting ill health effects) Nothing can stop the earth from becoming a Paradise within the next 1,000 years.

    January 13, 2012 at 9:59 pm | Report abuse | Reply
  5. Thrid Wurld

    @ elreyjones, bitter much?

    January 13, 2012 at 10:05 pm | Report abuse | Reply
  6. Californio

    What the hell is this propaganda against my state? being number 9 of ALL economies of the WORLD still leaves towering over most nations. so California still remains dominant over most of the world in economic terms. And to those calling it a "3rd world cesspool": I guess that means your beloved "white" nations like Italy (which the article itself is slipping in terms of growth) and Spain (which isn't even on the list), etc. are 3rd world cesspools too. so must be Malaysia. so must be Singapore. So must be Chile or Argentina.

    morons.

    January 13, 2012 at 10:35 pm | Report abuse | Reply
  7. chrissy

    @ philip, spectacular post at 9:59!!! And i mean that in the most sincere way possible!

    January 13, 2012 at 10:37 pm | Report abuse | Reply
  8. banasy©

    I actually think that is says something that Cali is on there at all, considering it's not a country....

    January 13, 2012 at 10:42 pm | Report abuse | Reply
  9. banasy©

    @Philip and chrissy:

    Word.

    January 13, 2012 at 10:43 pm | Report abuse | Reply
  10. chrissy

    lol @ banasy i thought that same thing but then i remembered, they DO have hollywood lmao!

    January 13, 2012 at 10:45 pm | Report abuse | Reply
  11. bobcat (in a hat)©

    @ Philip

    I'm going to jump on the bandwagon. That post was excellent.

    January 13, 2012 at 10:48 pm | Report abuse | Reply
  12. chrissy

    And yea word to you also, i just hope i dont regret that even tho i did mean it!

    January 13, 2012 at 10:48 pm | Report abuse | Reply
  13. chrissy

    Hey bobcat! Retired yet?

    January 13, 2012 at 10:51 pm | Report abuse | Reply
  14. leeintulsa

    It is a pretty awesome standing.. And ours is so out of whack with everyone else.. We're at the top with 14 and a half.. the next closest is China, with 5.9? It's not purely a matter of size, is it? European countries are smaller than brazil or india.. I suppose that would be the culture?

    How can we be doing so much better than everyone else, and it still feels like we're blowing chunks and some of them are having haydays..? They're *SOCIALISTS*, for christ's sake..

    It is hard to believe California has a greater GDP than a country like India.. That place is huge.. And there's.. like.. billions of em..

    January 13, 2012 at 10:54 pm | Report abuse | Reply
    • banasy©

      Leeintulsa, if you don't start showing up more, I will have some very stern words for you...I miss you!
      Come back to us....come back...

      January 13, 2012 at 11:51 pm | Report abuse |
  15. chrissy

    And hamsta if you are a religous man my suggestion to you would be bone up on the bible! You maybe should read daniel and the lst verse i would suggest is 4:27 then 2:44 and then go back to the beginning and read it all, daniel i mean. Very insightful! :)

    January 13, 2012 at 10:56 pm | Report abuse | Reply
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