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California: Economy
California's gross state product exceeds $1.3 trillion, making it one of the world's largest economies.
California accounts for 13 percent of the nation's output, and trails only Japan, Germany, and the United Kingdom.
Our nation's next largest state economy—New York—is about 60 percent the size of California's.
California has a large number of jobs and businesses in many different industries.
The largest industry is services, which accounts for nearly one-fourth of all output in the state.
This industry includes such diverse sectors as computer and software design, motion picture production, engineering,
legal, health care, child-care, and hotels.
The next largest industries—finance, trade, and manufacturing—encompass such elements as banking activities, retail stores, import-export activities, and the manufacturing and sale of high-tech goods.
International trade is a major source of California economic activity. Total exports reached a peak of $120 billion in 2000, accounting for 11 percent of the state's total output.
California-produced computers and electronics account for over one-half of our exports. This is followed by agriculture, machinery, and transportation.
Exports fell sharply in both 2001 and 2002, reflecting both a worldwide slowdown in the demand for high-tech goods and sluggish economic growth among our major trading partners.
Over one-half of the nearly 2.4 million in new jobs created in California over the past decade have been in the services sector.
Trade, government, and construction accounted for the bulk of the remaining job increases. The growth in these areas is generally consistent with California's expanding population.
Manufacturing employment has fallen over the past decade, reflecting continued losses in the aerospace sector and recent declines in the commercial high-technology sector.
- Source: California Legislative Analysist's Office
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California: Economy
California's gross state product exceeds $1.3 trillion, making it one of the world's largest economies.
California accounts for 13 percent of the nation's output, and trails only Japan, Germany, and the United Kingdom.
Our nation's next largest state economy—New York—is about 60 percent the size of California's.
California has a large number of jobs and businesses in many different industries.
The largest industry is services, which accounts for nearly one-fourth of all output in the state.
This industry includes such diverse sectors as computer and software design, motion picture production, engineering,
legal, health care, child-care, and hotels.
The next largest industries—finance, trade, and manufacturing—encompass such elements as banking activities, retail stores, import-export activities, and the manufacturing and sale of high-tech goods.
International trade is a major source of California economic activity. Total exports reached a peak of $120 billion in 2000, accounting for 11 percent of the state's total output.
California-produced computers and electronics account for over one-half of our exports. This is followed by agriculture, machinery, and transportation.
Exports fell sharply in both 2001 and 2002, reflecting both a worldwide slowdown in the demand for high-tech goods and sluggish economic growth among our major trading partners.
Over one-half of the nearly 2.4 million in new jobs created in California over the past decade have been in the services sector.
Trade, government, and construction accounted for the bulk of the remaining job increases. The growth in these areas is generally consistent with California's expanding population.
Manufacturing employment has fallen over the past decade, reflecting continued losses in the aerospace sector and recent declines in the commercial high-technology sector.
- Source: California Legislative Analysist's Office
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