California overtakes Britain to become fifth biggest economy in the world

California overtakes Britain to become fifth biggest economy in the world

California has overtaken Britain to become the fifth biggest economy in the world in its own right.

The booming west coast US state has a population of 40million but that is projected to hit 60 million by 2050.

Gross domestic product rose by by $127 billion from 2016 to 2017 in California to take it past $2.7 trillion, according to reports in the US.

Meanwhile, Britain’s economic growth shrunk as we continue to struggle amid the uncertainty of Brexit .

It means California moves above us into the top five economies in the world, behind only the US, China, Japan and Germany.

The state’s diverse economy is driven by the tech industry in Silicon Valley, the entertainment industry in Hollywood and the enormous agricultural industry in the Central Valley.

Between 2012 and 2017, California accounted for 16 per cent of all US job growth.

In comparison, Britain’s growth has slowed to a virtual standstill in the first three months of 2018, hitting just 0.1 per cent in the first quarter.

Chancellor Philip Hammond blamed the sluggish performance on bad weather but the Office for National Statistics said that had been only a minor factor.

A contraction in construction, weak manufacturing growth and a squeeze on consumer spending led to the weakest economic activity in the country for five years.

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