California’s economy leads the nation

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Jul 15, 2024

California's economy leads the nation

What you need to know: Over the past three months, California has announced that it retained its title as the fifth largest economy in the world, reached record-high tourism spending, created thousands of fast food jobs, and more.

SACRAMENTO - California is leading the nation's economic growth. Since April, Governor Gavin Newsom has announced that the state has retained its title as the world's fifth largest economy, broken tourism-spending records, increased its population, created thousands of fast food jobs, has the most companies on the Fortune 500 list, and expanded businesses in San Francisco.

"There's only one state with a dream - the California Dream. Built on opportunity, promise, and ingenuity, California is the nation's economic driver and the place people across the globe look to to see what's possible. That's why we continue to grow businesses, expand our economy, break records, and create thousands of jobs across the state."

Governor Gavin Newsom

World's fifth largest economy

California is the 5th largest economy in the world for the seventh consecutive year, with a nominal GDP of nearly $3.9 trillion in 2023 and a growth rate of 6.1% since the year prior, according to the U.S. Bureau of Economic Analysis. On a per capita basis, California is the second largest economy in the world among large economies.

Highest level of tourism spending

California has the largest market share of tourism in the nation. Travel spending in the state reached an all-time high of $150.4 billion last year, surpassing the record $144.9 billion spent in 2019 - spending that is 3.8% higher than 2019 and 5.6% higher than 2022.

The new travel-spending record generated $12.7 billion in state and local tax revenue by visitors in 2023, marking a 3% increase over 2019. Tourism created 64,900 new jobs in 2023, bringing total industry employment to 1,155,000.

Increasing population

California's population increased by 67,000 people last year to 39,128,162, according to data by the California Department of Finance. The state's population growth can be attributed to an increase in legal foreign immigration and natural population increasing. This is the first year since 2020 that the state has seen a net increase.

Thousands of fast food jobs created

According to new state and federal employment data, California's fast food industry has added jobs every month this year, including roughly 10,600 new jobs in the two months since Governor Newsom signed the fast food minimum wage bill into law.

Most companies on the Fortune 500 list

For the first time since 2014, California is home to the most Fortune 500 companies in the country - beating out Texas, Florida, and all other states. From tech to finance to entertainment, the state's diverse economy has 57 companies on the list, while Texas and New York are tied in second with 52 companies each.

Businesses are expanding

Last month, Visa opened up their new state-of-the-art headquarters in San Francisco. They are one of countless companies to recently announce new investments in the Golden State. Hamdi Ulukaya also announced he is re-establishing Anchor Brewing, Nintendo is opening up its second U.S. store in San Francisco, and Disneyland is expanding its theme park with a $1.9 billion investment.