April 13, 2017
California's Economic Output Outpaces Nation for Fourth Straight Year
Sacramento –California's Gross Domestic Product (GDP) has grown consistently faster than the nation's as a whole for four straight years. In 2015, the California GDP rose 5.6 percent, while the U.S. GDP increased 3.7 percent (unadjusted for inflation). Also called "economic output," GDP measures the market value of goods, services, and structures that are produced within a particular period, and tends to be related to population, income, spending, employment, housing permits, and other measures of economic activity.
According to the U.S. Bureau of Economic Analysis, the New York-Newark-Jersey City metropolitan area led the nation with an economic output of about $1.603 trillion in 2015. California was represented by two of the top 10 areas: Los Angeles-Long Beach-Anaheim ($930.8 billion), and San Francisco-Oakland-Hayward ($431.7 billion). The Los Angeles metropolitan area accounts for 37.9 percent of California's GDP, while the San Francisco Bay Area comprises 17.6 percent.
"I'm proud to represent the cities of Anaheim, San Diego, and Riverside, all of which ranked in the top five when it comes to economic activity among California regions," said Board of Equalization Chairwoman Diane Harkey.
"The greater Los Angeles area once again leads the state in economic output," said Board of Equalization Member Jerome Horton. "I am proud to represent this region, which is responsible for almost 40 percent of California's gross domestic product."
"Once again San Jose was among the fastest growing regions economically, not just in California, but in the U.S as well," said Board of Equalization Member Fiona Ma. "I am so proud to represent businesses in the Silicon Valley, San Francisco, Oakland, Santa Rosa – which all saw growth that was higher than the state average."
San Jose has been the fastest growing metropolitan area within California – and the second fastest in the U.S. – with stronger economic growth than 380 of the nation's 382 metropolitan areas in 2015. With growth rates that ranged from 5.0 percent to 10.4 percent over the past five years, the San Jose area had the largest increase in that time frame – 37.6 percent – more than 60 percent higher than the California average gain of 23.1 percent, for a total GDP of more than $235 billion.
One way to compare economic wellbeing among regions is to calculate inflation-adjusted GDP per capita. Real economic output per capita in the San Jose area was close to twice that of the California average in 2015. Other areas with higher than average per capita real GDP include San Diego, and Napa.
For more on this, view the Board of Equalization's Economic Perspective for March 2017.
The five-member California State Board of Equalization (BOE) is a publicly elected tax board. The BOE collects $60.5 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees, visit the California Tax Service Center.
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