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In the latest data from International Monetary Fund [[link removed]] (IMF), California—if it was treated as a separate economy—moved from 5th largest in the world to 4th largest as Japan’s economy contracted. However, Japan is projected to resume growth at 4% in 2025, while India is projected to continue moving up the ranks with 7% growth.

As we’ve noted before, while California enjoys a high GDP, it dissipates the effective purchasing power through high and increasing costs of living. Using the most current US Bureau of Economic Analysis Regional Price Parities to adjust California’s current GDP to an equivalent statistic, California barely edged ahead of Italy from 12th to 11th highest when GDP is measured by IMF’s purchasing power parity series. This shift in rank is a stark illustration of the extent to which the costs of living sap the economic reach of the state’s households.

The California Center for Jobs and the Economy provides an objective and definitive source of information pertaining to job creation and economic trends in California. [[link removed]] Contact 1301 I Street Sacramento, CA 95814 916.553.4093 If you no longer wish to receive these emails, select here to unsubscribe. [link removed]