We’ve spent significant time in this space bemoaning the numerous hurdles California’s economy faces.
But for a moment, let’s consider how, despite such challenges, business endeavors of all sorts statewide create vast sums of economic activity.
My trusty spreadsheet looked at the just-released 2023 edition of Gross Domestic Product stats by county, as the US Bureau of Economic Analysis counted. This local tally of business output found that 57 US counties produced $100 billion or more of goods and services in 2023 dollars.
Ten of them were in California. No state had more.
The closest were New York, Texas and Florida with six counties in this club. Then came New Jersey with four, and Ohio and Pennsylvania with three.
Club membership
The nation’s most prolific county for business, by GDP math, was Los Angeles.
The LA economy – filled with everything from a massive service industry to manufacturing, shipping, and Hollywood – created $962 billion worth of goods and services in 2023.
How big is that? That output is loosely equal to what’s produced in Switzerland, using International Monetary Fund stats on GDP in US dollars. LA’s business scene is also as big as Pennsylvania’s, according to BEA state GDP figures.
LA also creates as much GDP as the nation’s 1,591 smallest counties combined.
Heft aside, LA’s economy looked meek last year. Its GDP growth after inflation was minimal – a mere 1%, ranking No. 47 of these 57 giant county economies.
California’s next-largest member of the club was Santa Clara County. Its $420 billion GDP in 2023 was the sixth highest nationally, on par with Denmark or Wisconsin.
This tech-centric economy looked perkier, with 3.4% growth in 2023, ranking 19th-best.
Now think about the state’s eight other supersize county economies on the list …
Orange: $334 billion, No. 9 – or roughly the same as the Czech Republic or South Carolina. Business clusters from real estate to tourism mustered just 0.5% growth (No. 54).
San Diego: $315 billion, No. 10 – roughly Finland or Louisiana. An economy highlighted by medical work grew by 1.4% (No. 41).
San Francisco: $263 billion, No. 11 – roughly Peru or Oklahoma. This spot for headquarters, financial and tech had 3.2% growth (No. 21).
San Mateo: $203 billion, No. 15 – roughly Hungary or Nebraska. This Bay Area tech hub’s GDP grew 7.7%, tops among the giant US counties.
Alameda: $179 billion, No. 19 – roughly Ukraine or Arkansas. The economy, known for colleges, science, and Tesla factories, grew by only 0.6% (No. 52).
San Bernardino: $131 billion, No. 37 – roughly New Mexico or the Slovak Republic. The logistics-heavy business scene expanded by 0.9% growth (No. 50).
Riverside: $126 billion, No. 41 – roughly Idaho or Dominican Republic. Another logistics-focused economy had 1.4% growth (No. 41).
Sacramento: $126 billion, No. 42 – roughly Idaho or Dominican Republic. The state capitol’s government-centered economy had 2.7% growth (No. 27).
Bottom line
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As I’ve said before, policymakers should remember that California’s immense economic size does not insulate it from business turmoil – whether that’s broad gyrations or self-inflicted wounds.
Just meditate on 2023’s growth.
California’s 10 big counties collectively created $3 trillion in GDP – up 2% a year after inflation. The other 47 giant counties from elsewhere in the US, with $9 trillion in GDP, grew a combined 2.7%.
Postscript
Many folks brag that California’s economy would be the world’s fifth-largest, using GDP stats.
Well, using the latest data, the Golden State retains that ranking.
As of June 2024, California’s statewide GDP was running at a pace of $4.1 trillion. That trails the US, China, Germany and Japan.
But No. 6 India’s fast-growing economy is catching up. The IMF estimates announced in October estimated India’s 2024 output at $3.9 trillion – just $200 billion worth of GDP away.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
