The US state of California has surpassed the UK (United Kingdom) to become the fifth largest economy in the world, as per the new federal data released in the country on Friday.
California's GDP (Gross Domestic Product) increased by $127 billion in 2017 making its economy worth more than $2.7 trillion according to the data. When compared in terms of US dollars, UK's GDP slightly shrunk during the same period.
With 40 million residents, the state has its technology hub "Silicon Valley" that hosts headquarters of big names like Apple, Google Netflix, and HP. It is also home to the world capital for English-speaking entertainment: Hollywood. Additionally, it is known as America's "Salad Bowl" with its agricultural heartland.
Leading contributors of the GDP were its financial services and real estate with $26 billion in growth. This is followed by information companies (includes technology) at $20 billion and manufacturing at $10 billion. All sectors except agriculture contributed to the rise in the state's economy.
The state has shown substantial growth in its economy since the Great Recession. Falling to the 10th position, California added 2 million jobs and grew its GDP by $700 million since.
It has 12 percent of the country's population and contributed for 16 percent of the employment growth. California now contributes up to 14.2 percent of the US economy.
Its economy is the largest only after the US, China, Japan, and Germany.