California on track to become the fourth largest economy in the world

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Critics of California point to high taxes, eye-watering housing costs, earthquakes and wildfires as reasons for the exodus of businesses, the state’s economy poised to become the world’s fourth largest, according to a report. Is.

Elon Musk turned heads when he decided to move Tesla’s headquarters from California to Texas, citing the availability of housing and commute times for employees in the Bay Area, but the state’s economy is now poised to overtake Germany. Is, bloomberg says,

And that would only surpass the economies of the US, China and Japan.

California, which has a population of 40m, overtook the UK in fifth place in 2017 to overtake Brazil in seventh place, and France in 2015 to reach sixth.

The state’s latest economic figures won’t be officially published until 2023, but Bloomberg says estimates suggest California’s domestic product will surpass Germany’s by about $72 billion.

California, which is home to the likes of Apple, Google and Facebook, currently has 379 companies with a market value of at least $1bn, compared to 155 publicly traded firms in Germany.

Corporate revenue in California has increased by 117 percent over the past three years by 147 percent and by market capitalization compared to 41 percent and 34 percent in Germany.

In 2021, Germany benefited from California’s $3.3576 to a GDP of $4.22 trillion, But Bloomberg says That it was the smallest ever and is set to disappear.

The state’s top three industries – technology hardware, media and software – have grown by 63 per cent, 95 per cent and 115 per cent in the last three years, According to data from Bloomberg,

California Governor Gavin Newsom, who is set to win another term in office in the November midterm election, welcomed the situation.

California’s ‘Best Days Behind Us,’ “All this data continues to lie the dominant narrative and confusion” Mr Newsom said,

“As someone who grew up in California, I take pride in California’s resilience, its leadership, its entrepreneurs, its formula for success that dates back more than half a century.

And Mr Newsom said the state would “continue to double down on future industries such as renewable energy and clean energy”.

Despite personally leaving California for Texas, Musk has vowed to actually expand production at Tesla’s Fremont factory, while SpaceX is also headquartered in the state.

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