posted July 12, 2013 11:58 AM            

State’s economy surges compared to rest of globe

Christopher Arns
Staff Writer- Sacramento Business Journal

California’s economy took a step forward compared to the rest of the world last year, according to projections from a prominent Bay Area economist.

Steven Levy, who runs the Center for Continuing Study of the California Economy, released a report showing the Golden State’s economy climbed into a virtual tie with Italy and Russia to become the eighth-largest in the world in 2012. All three countries had a gross domestic product of $2.0 trillion.

Levy, who based his report on numbers from the World Bank, predicts California’s large jobs gains will push the state into sole possession of eighth place sometime this year. The economist thinks Italy’s economy will fall as the European Union continues to struggle through a protracted banking crisis.

Other European countries like France and the United Kingdom are also sliding closer to California’s spot in the rankings. At the same time, Levy predicts India’s surging economy will eventually pass California and drop the state back into ninth place.

According to the report, Texas had the second-largest GDP in the United States behind California — but the Lone Star State’s economy grew 2.8 percent over the past 12 years, compared to California’s 1.5 percent growth rate. North Dakota had the fastest growth rate among the states at 5.1 percent over that same time period and experienced a 13.4 percent growth spurt in 2012.

Globally the United States still had the largest economy with a GDP of $15.7 trillion. China’s economy was second at $8.2 trillion.

Read the complete report by the center here.

Christopher Arns covers state legislation, regulation and contracts, as well as economic news, international trade and economic development for the Sacramento Business Journal. http://www.bizjournals.com/sacramento/news/2013/07/11/calif-economy-surges-compared-globe.html

Study: California Economy, State Finances Stronger than Other States

By Ben Adler

A new study shows California’s economy, unemployment rate and state revenues are all moving in the right direction – at a faster pace than most other states.

(Sacramento, CA)
Tuesday, July 09, 2013

A new report that compares state finances finds California's budget revenues are soaring higher than all but one other state in the nation. Its economy is growing at an above-average pace as well.

The study comes from the Tax Policy Center – a project of the Urban Institute and the Brookings Institution. It compares state tax revenues, economic growth and other data for all 50 states.

Among the findings: California tax revenues jumped by 35 percent from the first quarter of last year through the first quarter of this year. That’s second only to North Dakota and well ahead of third place Montana.

Some of those increases come from the voter approval of Proposition 30 last fall, but the state’s economic growth helped too. California’s gross domestic product rose 3.5 percent from 2011 to 2012. That’s tied for fifth-highest in the nation.

And the state’s unemployment rate also dropped faster than any other state – by more than two percent. But California still ties for the sixth-highest unemployment rate in the nation. http://www.capradio.org/articles/2013/07/09/study-california-economy,-state-finances-stronger-than-other-states/