California’s economy jumps to No. 6 in global rankings

California’s economy jumps to No. 6 in global rankings

California has surpassed France and Brazil in annual economic rankings to become the sixth-largest economy in the world, the Gov. Jerry Brown administration announced on Tuesday.

The California State Department of Finance said in a statement that the Golden State leapfrogged two spots in last year’s annual rankings, from No. 8 to No. 6. The rankings are based on data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA).

The strong ranking of the Golden State reflects its comparatively healthy economy at a time when much of the rest of the nation and world are struggling.

Jeff Michael, an economist with the University of the Pacific, said, “It’s a statement of the size and significance of the state’s economy to the world, and the United States. It speaks to California doing relatively well in a sluggish global economy.”

California has seen significant economic growth since 2012, when the state had fallen to 10th spot in the global economic rankings because of the lingering effects of the housing market slump and recession. The most recent data showed the state’s unemployment rate at 5.3 per cent.

However, many economists have cautioned global economic rankings seesaw from year to year and can easily be influenced by factors like fluctuations in currency valuations. They pointed out that the strength of U.S. dollar vs. the euro played a key role in pushing California ahead of France last year.