The condition of America’s growth and economy has always depended heavily on the performance of individual states, yet some contribute more than others. California, for instance, blossomed in 2016 as the sixth largest economy in the world, boasting a GDP that’s comparable in size to the U.K.’s and even larger than those of France and India. Impressive as these findings are for the Golden State, how does Los Angeles* in particular rank among the country and the world’s healthiest economies?
Here to report on the subject is Partners Trust’s Chief Economist and Vice President of Business Intelligence, Selma Hepp. Offering monthly insights, she dives into the current real estate market and economic conditions, helping associates thoroughly understand client demographics.
In Hepp’s latest Economic Straight Talk analysis, she explains that the Los Angeles Basin’s GDP grew faster than the national rate at 2 percent. This growth was fueled by gains in the information sector, which encompasses motion picture and Internet services.
Hepp’s article also points out that the economies of the Los Angeles Basin ($1.2 trillion) and the Bay Area ($781 billion) are so large that they would rank a respective fourth and sixth among the top 10 U.S. states. According to a report from Palo Alto-based Center for Continuing Study of the California Economy, when compared with other world economies, the Los Angeles Basin ranks 15th after Australia and before Mexico, up from 16th last year. For reference, the venerable Bay Area ranks 18th behind Turkey and ahead of the Netherlands.
“Future employment and economic growth are tied to the availability of skilled workers, who will choose to live in California if the economics make sense,” Hepp says. “Put differently, housing affordability will be the major factor in ensuring that qualified workers remain here.”
*The Los Angeles Basin includes Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties.
Hepp’s previous positions include Chief Economist at Trulia, senior economist for the California Association of Realtors, and economist and manager of public policy and homeownership at the National Association of Realtors. She holds a Master of Arts in Economics from the State University of New York (SUNY), Buffalo, and a Ph.D. in Urban and Regional Planning and Design from the University of Maryland.