California Regains Ranking as World's Eighth-Largest Economy

A recent Sacramento Business Journal article stated that California now ranks as the world’s eighth-largest economy, the gains driven by technology, tourism, trade and the resurgence of construction. The Golden State now falls behind Brazil but in front of Russia and Italy. California saw a turnaround of construction last year as well as increased agriculture and exports of ag products, according to the Center for Continuing Study of the California Economy. The state economy grew by 2 percent in 2013, narrowly outpacing the growth of the U.S average.

The findings, based on a 2013 gross domestic product of $2.203 trillion, come from data released by the World Bank and organized by the Center for Continuing Study of the California Economy.

"Certainly tech was the leader, but it wasn’t the only sector and it wasn’t only the Bay Area," said Stephen Levy, the center’s director.

California saw a turnaround of construction last year as well as increased agriculture and exports of ag products, Levy added. The state economy grew by 2 percent in 2013, narrowly outpacing the growth of the U.S average.

"Construction would be the big turnaround industry because it’s the big thing we dropped. It would be the new added industry," Levy said.

In 2012, California ranked as the world’s 10th-largest economy, behind Italy and Russia, but those European countries have struggled, Levy said. The drought will affect California’s economy this year, but the degree is still unknown.

The state could still outpace Brazil next year, but that largely depends on the economic impact of the World Cup, Levy said. 

In 2013, the U.S. was again the world's top economy, followed by China, Japan, Germany and France.