According to recent reporting, the California economy is so large that it will soon overtake Germany as the fourth-largest economy in the world.
This is a staggering figure when it is put in perspective, not least of all because of the fact that the population of California is only around 39 million people, compared to Germany’s roughly 83 million citizens.
The so-called ‘Golden State’ has continued to outperform both its domestic and international peers, despite the difficult macroeconomic conditions of the last two years. Even with the pandemic and the current period of elevated inflation slowing things down, California’s gross domestic product looks set to overtake Germany. When this happens, California will be the fourth largest economy after the US, China, and Japan.
In both the cryptocurrency list and other similar metrics, California continues to perform strongly. The Californian economy has a broad base and performs equally well across agriculture, manufacturing, and services.
As a sign of this growth, California has a total of 379 companies with a market value of at least $1bn dollars. This is compared to the 155 publicly traded companies in Germany, which meet the same threshold.
Clearly, times are good for Californians. Not only is the economy performing incredibly strongly, but most economic measures are looking up for individuals residing in the state. Job creation is at an all-time high, while the recent package of support announced by California Governor Newsom will help Californians with rising inflation and costs.
This package of support includes a staggering $52bn in financial assistance, which provides $26bn in direct payments, as well as $15bn in tax relief and grants.
However, with the Californian economy performing so strongly in recent months and years, what are the industries Californians are actually investing in?
Cryptocurrencies
One of the fastest-growing sectors in California, as is the case in other parts of the world, is the cryptocurrency sector.
Nowhere is this growth more evident than in the price of Luna or the SLP price, among other similar cryptos, which has surged in recent years.
California Governor Gavin Newsom has proved himself an ally of crypto investors in the state and has affirmed his commitment to developing cryptocurrency regulations in recent years. Given the presence and prominence of the tech industry within California, it looks likely that the Golden State will be a hub for crypto development in years to come.
The explosion of investment opportunities within the crypto sector in California has led many to view it as a prime investment opportunity.
Renewable energy
The latest figures reported by Bloomberg show that renewable energy has become one of California’s fastest-growing businesses. Governor Newsom has increased his support for the renewable energy sector in California and has shown a firm commitment to clean energy sources and zero-emission vehicles, in particular.
Newsom has most recently implemented a $10bn package that will make it more affordable to buy electric vehicles while also heavily investing in the proper infrastructure to support these vehicles.
Clearly, this support has paid off. According to the latest figures, California now has six times more jobs in the renewable sector than those linked to fossil fuel, with zero-emission vehicles becoming one of the state’s top exports.
The rising prices across the renewables sector make investing in renewable energy companies an easy choice for many Californians. It is now one of the top sectors for Californians to invest in.
Construction
Given the state of the Californian economy in general, it is little surprise that the construction industry has also experienced such strong growth in recent months and years.
The construction sector essentially supports all areas of economic growth within the state. Regardless of whether you are building the new headquarters of an exciting cryptocurrency startup or building a new renewable energy plant, the construction sector will closely support it.
As a sign of this, there is significant demand for construction workers across the state. In the last five years alone, construction occupations have grown by around 35%, with drywall and ceiling installers outpacing the industry average by almost four times.
The construction sector presents an excellent investment opportunity for many Californians. Given that demand for both commercial and residential property remains high, there has arguably never been a better time to invest.
For more on California state facts, click here.
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