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California’s economy has surpassed that of the United Kingdom to become the world’s fifth largest, according to new federal data made public Friday May 4, 2018.
California is home to nearly 40 million people which represent 12 percent of the U.S. population but contributed 16 percent of the country’s job growth between 2012 and 2017. The United Kingdom has 25 million more people than California but now has a smaller GDP while California’s gross domestic product rose by $127 billion from 2016 to 2017, surpassing $2.7 trillion, the data said.
California’s economic output is now surpassed only by the total GDP of the United States, China, Japan and Germany. The state has 12 percent of the U.S. population but contributed 16 percent of the country’s job growth between 2012 and 2017. Its share of the national economy also grew from 12.8 percent to 14.2 percent over that five-year period, according to state economists.
Since 2012, California as the largest U.S. state has added 2 million jobs and grown its GDP by $700 billion.
California’s economic juggernaut is concentrated in coastal metropolises around San Francisco, San Jose, Los Angeles and San Diego.
- California is the sixth largest economy, between the UK and France.
| AMERICAS – USA California businesses exported $164 billion worth of goods in 2015, supporting 706,969 jobs. California exports to more than 225 foreign markets. California is one of the 10 largest economies in the world with a gross state product of more than $2.6 trillion. • Services: For 2016, the surplus in services decreased to $247.7 billion from $261.4 billion in 2015. Services receipts decreased to $710.2 billion from $710.6 billion. The largest decreases were in financial services and transport. The largest increase was in other business services, and maintenance and repair services. For 2016, services imports increased to $504.6 billion from $491.7 billion. California Trade The U.S. Department of Commerce reported that in 2016, California exports amounted to $163.6 billion. This is a decrease from the 2015 total of $165.4 billion. California maintained its perennial position as a top exporting state. Exports from California accounted for 8.8% of total U.S. exports in 2016. California’s top export destinations are Mexico, Canada, China, Japan and Hong Kong. California trade and exports translate into high-paying jobs for more than 1 million Californians. Top Export Sectors California is a top exporter in the nation of electronic products, and sales of food and kindred products. Computers and electronic products are California’s top export, accounting for 25.9% of all the state’s exports. Other top categories included transportation equipment; miscellaneous manufactured commodities; and machinery, except electrical. • Mexico: Mexico continues to be California’s No. 1 export market. California exports to Mexico decreased to $25.26 billion in 2016. Mexico purchases 15.4% of all California exports. California’s exports to Mexico are driven by computers and electronic products, which account for 21.7% of all California exports to Mexico. Other top categories include transportation equipment, machinery, except electrical, and chemicals. • Canada: Canada is California’s second largest export market, purchasing 9.8% of all California exports. In 2016, California exported more than $16.18 billion to Canada. Computers and electronic products remained California’s largest exports, accounting for 32.2% of all California exports to Canada. • Asia-Pacific: California is the largest exporting state to Asia. In 2016, California exported $68.58 billion in goods to the region. • Greater China: California exports to Mainland China totaled $14.36 billion in 2016. Computers and electronic products accounted for 30% of exports to China. Exports to Hong Kong increased to $9.6 billion in 2016, maintaining Hong Kong as California’s No. 5 export market, which surpassed South Korea in 2015. • Japan: California exports to Japan totaled $11.76 billion in 2016. Computers and electronic products accounted for 23.7% of total exports. • European Union: California exports to the European Union (28) totaled $29.7 billion in 2016. California is the top exporting state to Europe. Computers, electronic products and chemicals are the leading export sectors to the region. European Union countries purchase 18.2% of all California exports. California Investment A November 2016 study by the Organization for International Investment found: • 715,800 workers in California are employed as a result of 2016 Exports from California Source: U.S. Department of Commerce Total in thousands ($USD) $218,185 : $25,266,105 $13,820 : $218,185 $1,722 : $13,820 $2 : $1,722 zero 102 2018 California Business Issues ® INTERNATIONAL TRADE • 196,000 foreign direct investment (FDI) jobs in California are in the manufacturing sector. • Among all global employers, those from Japan, the United Kingdom and France support the largest number of jobs in California. • More than 2,030 global employers have operations in California. • California ranks first in the nation in the total number of jobs at U.S. subsidiaries. According to the Organization for International Investment, U.S. subsidiaries play a vital role in California’s economy, insourcing 715,800 jobs; writing paychecks to 5% of California’s private sector workforce. Nearly 30% of jobs at U.S. subsidiaries in California are in manufacturing—accounting for 196,000 jobs. |
According to former Governor Jerry Brown, California’s freight industry accounts for over $700 billion in revenue and over five million jobs. These employment positions are provided by businesses associated with an industry estimated to comprise one-third of the California State’s economy and jobs. The importance of Global Trade is recognized by all the decisions-makers in California political landscape. The recently elected Governor Gavin Newsom, have recognized already in 2011 the important role of international trade to the state of California, by elaborating in his Economic Growth and Competitiveness Agenda, the following statement: “…the state must become a better partner in preserving and enhancing California’s position as a preeminent hub in the global economy. At the simplest level, it must make promoting both trade and its international presence an economic priority undergirded by a plan and performance metrics, bringing scale and efficiency to existing international efforts by regions.”
This new agenda is built on eight pillars that were considered as essential in delivering the next economy and which included the followings:
- Gearing up exports
- Reinvigorating manufacturing
- Driving innovation
- Accelerate the clean economy
- Skill up for opportunities
- Build infrastructure
- Align with regional strengths
- Organize for success
Total Trade [1]
| Total Exports (2017) (Origin of Movement) | $172,016,249,969 |
| Total Imports (2017) | $440,576,224,187 |
| Trade Balance (2017) | -$268,559,974,218 |
Trade Partners [1]
Export Partners
Top 10 Export Countries
| Country | Export USD$ |
|---|---|
| Mexico | $26,771,801,557 |
| Canada | $16,842,021,711 |
| China | $16,433,104,400 |
| Japan | $12,830,448,508 |
| Hong Kong | $12,108,991,143 |
| Korea, South | $9,601,895,013 |
| Taiwan | $6,313,260,046 |
| Germany | $6,003,278,639 |
| Netherlands | $5,785,302,641 |
| United Kingdom | $5,030,384,740 |
Import Partners
Top 10 Import Countries
| Country | Import USD$ |
|---|---|
| China | $159,142,192,980 |
| Mexico | $46,392,712,316 |
| Japan | $40,480,037,936 |
| Canada | $28,690,231,238 |
| Malaysia | $16,387,544,085 |
| Korea, South | $15,787,727,237 |
| Taiwan | $13,401,308,401 |
| Vietnam | $12,459,451,614 |
| Germany | $11,501,912,977 |
| Thailand | $10,361,166,473 |
VIEW ALL EXPORT/IMPORT TRADE PARTNERS
Traded Goods [1] (at the 2-digit HS Code level)
Top 10 Export Goods
| HS Code | Export USD$ |
|---|---|
| (85) Electrical Machinery | $31,539,215,025 |
| (84) Industrial Machinery | $26,604,374,763 |
| (90) Precision Instruments | $16,172,382,791 |
| (87) Motor Vehicles & Parts | $11,353,979,321 |
| (08) Fruit & Nuts | $10,788,254,080 |
| (88) Aircraft | $9,751,468,621 |
| (71) Precious Stones & Metals | $8,484,073,478 |
| (27) Oil & Mineral Fuels | $4,775,047,590 |
| (39) Plastics | $4,409,925,546 |
| (30) Pharmaceuticals | $4,251,747,243 |
Top 10 Import Goods
| HS Code | Import USD$ |
|---|---|
| (85) Electrical Machinery | $97,680,254,088 |
| (87) Motor Vehicles & Parts | $75,846,652,260 |
| (84) Industrial Machinery | $71,162,995,831 |
| (27) Oil & Mineral Fuels | $23,786,615,148 |
| (90) Precision Instruments | $15,765,939,007 |
| (94) Furniture | $13,583,623,055 |
| (61) Apparel: Knit | $11,933,368,380 |
| (98) Nesoi | $9,115,959,913 |
| (64) Footwear | $8,702,714,592 |
| (95) Toys & Sport Equipment | $8,541,421,732 |
VIEW ALL EXPORT/IMPORT TRADE GOODS
http://cherkaouijournal.com/8812/
VIEW STATE RANK BY EXPORT/IMPORT TRADE GOODS
How California’s Economy Benefits From International Trade & Investment
Impact of Trade [2]
International trade accounts for one out of nine jobs in Southern California, plays a vital role in the Bay Area economy, and provides the infrastructure for California companies to export products to other states and countries.
| Total Export-Supported Jobs Related to Manufacturing | 629,071 (2016) |
| No. of Businesses Selling Products Overseas | 73,528 (2015) |
| Percentage of Exporters Classified as Small and Medium-size Companies | 96% (2015) |
| Percentage of Exports by Small and Medium-size Companies | 43% (2015) |
- In 2015, International trade supported more than 775,000 high paying California jobs. These trade-related jobs came from large and small companies, farmers, and factories
- California exports billions of dollars in goods and services annually, including computer and electronics, transportation equipment, agricultural products, software and machinery.
- Exports support small, medium, and large businesses. The vast majority of California exporters are small and medium-sized companies with less than 500 workers.
- Customers in 229 countries around the world buy California-grown and manufactured goods and services. Top markets like Mexico, Canada, and China buy billions of dollars of California products and services annually.
- Imports lower prices and increase choices for California companies and families.
- Free Trade Agreements (FTAs) have led to rapid export growth to partner countries. America’s FTA partners purchased 41% – more than $67 Billion – of California’s total exported goods in 2015.
- Foreign owned companies invest in California and employ more than 631,000 Californians.
“Companies that are new to exporting and companies that have previously considered and abandoned an exporting plan can use A Business of Details to get up to speed on terminology, processes, common pitfalls and strategies for success. This training video follows a shipment of Romaine Lettuce from a packing facility in Salinas, CA to its destination in Taiwan.”
This project is funded by the California Department of Food and Agriculture’s Specialty Crop Block Grant Program, and is presented by the California Centers for International Trade Development at State Center Community College District.
Source:
- California: Trade Statistics
- USA Trade Online (2017).
- International Trade Administration (Accessed on November 1, 2018)
2018 – In August, developers Lineage Logistics LLC and Dreisbach Enterprises Inc. will open a $90 million, 280,000-square-foot Cool Port that will store perishable food shipments.
Developer CenterPoint Properties will start construction in July on the Seaport Logistics Complex, a 440,000-square-foot distribution center at the former Army Base in West Oakland. The port said it will be the largest warehouse building at a West Coast port. CenterPoint declined to comment on the effects of tariffs.
On an adjacent parcel controlled by the city of Oakland, Prologis, the San Francisco industrial property developer, has a new 256,000-square-foot warehouse building that’s seeking tenants.
“I don’t think we’re quite there yet, but any kind of trade war is bad for economic growth generally. And that will affect everything including our business,” Hamid Moghadam, CEO of Prologis, said in an earnings call in April. “We are not yet concerned by the action, and we’ll just see what the action is going to be.”
NEXT TO READ on Global Trade
By Said El Mansour Cherkaoui
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