Key Facts
- Per Capita Real GDP
- $42,376 Rank: 8/50 (2007)
- Population
- 36,756,700 Rank: 1/50 (2008)
- Per Capita Personal Income
- $38,956 Rank: 11/50 (2006)
- Unemployment Rate
- 5.90% Rank: 46/50 (2008)
- Business Tax Climate Index
- Rank: 47/50 (2008)
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California: Introduction
The country’s most populous state is bordered by Mexico to the south and the Pacific Ocean to the west. Originally a territory of Mexico, California joined the Union in 1897 when Mexico surrendered it to John C. Frémont. Today California is home to over thirty-six million residents and is the most popular state for new immigrants. It is well known for its Hollywood productions, Silicon Valley start ups, and various tourist destinations. In addition to being the most populous U.S. state, California also leads the nation in economic activity with a GDP of over $1.7 trillion.
The strength of the Californian economy resides not only in its sheer size, but also in its diversity of industries such as agriculture, manufacturing, biotechnology, aerospace-defense, and tourism. This eclectic range of industries is supported by California’s endowment of natural resources including timber, petroleum, and natural gas. One industry that has continued to be one of the major contributors to California’s economy is agriculture. With 88,000 farms and ranches, agriculture provides 1 in 10 jobs and generates $32 billion annually with $100 billion in related economic activity. These figures come through the sale of 350 different plant and animal commodities. One important developing issue to the industry is the availability of water. As California is greatly dependent on irrigation, water shortages will become a challenge for the sustainability of agriculture in the state.
Tourism in California is another major economic contributor. California is the number one travel destination in the United States and is responsible for $88.1 billion of travel and tourism expenditures annually. The industry is anchored by Disney theme parks, Pacific beaches, and natural attractions such as the giant sequoia trees.
