California Now World's 9th Largest Economy

California is now the world's ninth largest economy. Which is quite something and remains the U.S. state with the largest economy ranked by GDP, but it was until recently, the eight largest, a rank now assumed by Brazil, and was even fifth on the list in the early 2000s:

Stephen Levy, Center for Continuing Study of the California Economy director and senior economist, said the California-Brazil swap is more about Brazil rising than California falling. Brazil’s vast population advantage (190 million to California’s 37 million) and the increasing prices of commodities that Brazil exports are just part of the country’s rise, he said....

Levy said California’s economy could soon surpass Italy’s, because of a recession in Italy and a falling euro.

"Report: California slips to world's 9th largest economy" by Jason Hanna, CNN, January 13, 2012

No recession? Strong U.S. growth tops estimates

It is conventional wisdom today that all of the United States of America, including California, are in a recession. However, as is often the case, the conventional wisdom appears to be incorrect:

A recession is typically defined as two consecutive quarters of negative economic growth, but the just-released second quarter 2008 U.S. economic growth rate numbers show a healthy growth rate of 3.3%, akin to the average rate of growth in the Reagan and Clinton administration "boom" years, and topping estimates of 1.9% (which accounted for the economic stimulus rebate checks). Q1 2008's growth rate was weak but positive, and Q4 2007 was recorded at negative 0.2% (-0.2%).

The U.S. Labor Department also reported a decrease in new unemployment claims numbers.

Arguably, one upshot of these figures is that those who believe now is not a good time to start or expand a business may not be correct.

See also UCLA forecast sees no California recession, San Francisco Chronicle, March 11, 2008:

[T]he UCLA Anderson Forecast predict that damage from the collapse of housing will be contained and that the state's feeble economy will avoid a headlong dive into negative territory.

Real estate weakness will remain a significant drag on the economy, leaving us treading water in 2008, but not slipping under the waves into recession," the report concludes.

December 2008 Update: An official U.S. recession was announced, with its effective start being named as December 2007.