California is a large state in the western United States. It has an elongated shape in the meridional direction, bordering the Pacific Ocean in the west, with Mexico in the south, and with other US states in the north and east. The date of formation of this state is September 9, 1850. The largest cities in California are San Francisco and Los Angeles. The state of California is developing rapidly. California's GDP is the largest among all US states.
General Information
California ranks third in terms of area and first in terms of population among other US states. The capital of California is the city of Sacramento. The most famous city in the state is Los Angeles. San Francisco, another city in the state of California, also gained great fame.
The economy of California is well developed and includes industries such as agriculture, oil refining, tourism, information technology. California is also considered the world center for cinematography, which makes a significant contribution to the state economy.
Geographic features
California is located in the southwestern United States in a zone of dry Mediterranean climate. Mountainous terrain prevails. The average height above sea level is 880 meters, and the maximum exceeds 4000 m. The seismic situation is rather unfavorable.
The climate is hot and rather dry. In summer, clear dry weather with high temperatures prevails. Winter on the coast is mild and moderately humid. In the north, the climate is cooler and more humid. In the east - arid, with cold winters and sultry summers. In the mountains, a decrease in temperature and an increase in precipitation are associated with altitudinal zonation. In the continental regions there is a large daily temperature amplitude.
Vegetation corresponds to climatic conditions. Depending on the region, it is represented by Mediterranean, mountain forest, semi-desert or desert communities. Great attention is paid to nature conservation: there are 8 national parks and 87 other natural parks.
Population
California's population is growing at a tremendous pace. So, in 1900 only 1 million 490 thousand people lived in the state, and in 2016 the number of inhabitants was already 39 million 250 thousand people. Rapid growth has been observed since 1940, and the rate of population increase has remained almost unchanged since then. This is largely due to the rapid growth of the state economy. But this same factor is also a serious problem for California.
Economy
The economy of California is the largest among all US states. California surpasses our entire country in terms of gross domestic product, including by sector. California's GDP is in 7th place in the world. The state’s share of US gross national income is 13 percent. In annual terms, California’s GDP is $ 2.5 trillion. One of the reasons for leadership in relation to other countries was the appreciation of the dollar against other national currencies. But it was the development of the economy that was of decisive importance. State growth is faster than the US economy as a whole.
Economic development takes place in many directions. Of great importance is the development of new technologies, especially in the energy sector. Thanks to this state, it has been possible to reduce greenhouse gas emissions to levels below 1990, despite rapid population and GDP growth. The transformation of the energy and other sectors in the direction of carbonless and energy-saving technologies will undoubtedly affect the development of the state economy as a whole. Various law enforcement agencies, including the military, received great development in California.
Economic forecast for the coming years
According to analysts, in the next year or two, the development of some areas in the economy will be combined with a decline in others. By the end of 2018, California's GDP will grow and by the end of the year will grow by 3%. At the beginning of 2019, it will decrease by a percentage, and then another 1.5% in 2019.
The employment situation will continue to improve. The level of personal incomes of citizens will increase. The greatest growth will occur in construction, education and healthcare, information technology, local government, logistics, warehouse services, as well as in professional and business services.
The situation with housing affordability will worsen, which will have a braking effect on the economy. Although by 2020 more people will be able to get their own homes, this will not be enough to meet the huge demand for housing.
High population growth rates are expected. Its rate in the coming years will be 0.5% per year or more, and the total population of the state will increase from 39.7 to 40.4 million people.
In relation to other regions of the United States, the situation in California will have its own specific differences. So, in the labor market there is a situation where the number of low-paid jobs in production decreases, and high-paid in the field of information technology - increases. Because of this, state manufacturing will not be able to compete with those regions of the United States where labor is cheaper.
In the next 2 years, an increase in workers' wages and consumer inflation is expected. In 2018, wage growth will be 4 percent, and inflation will be 2.5 percent. Prior to this, inflation was about 1.2% per year.
An increase in consumer spending by 2.5–3% per year and a decrease in 2019 are expected. Passenger car sales will fall from 17 million in 2017 to 16.5 million in 2019.
Housing stock will continue to increase. In two years, 1.3 million housing units will be commissioned. This is the average of the last 100 years.
Unemployment will remain low. In 2018, it will be 3.7 percent, and in 2019 - 4.2 percent.
The increase in the interest rate on federal funds will continue. The rate will increase in 2018 and in 2019. The United States ten-year Treasury bond will decline by 3 percent by the end of 2018, and even more by the end of 2019.
The mortgage interest rate is expected to increase to 4.8% at the end of 2018. At the same time, housing affordability is projected to decline.
The largest companies in California
California is the center of concentration of well-known companies. The largest enterprises in California accumulate huge production capacities and financial resources. Apple leads the billions of dollars in revenue. Her income in 2017 amounted to 229.23 billion dollars. In second place is McKesson - $ 198.53 billion. Chevron ($ 134.53 billion) is on the third line, followed by Alphabet ($ 110.86 billion). Intel company known in our country is in sixth place and has an annual income of 62.76 billion dollars. Facebook revenue is estimated at $ 40.65 billion.
California - GDP per capita
California's gross domestic product is more than $ 2 trillion. This sharply distinguishes this state from other US states. However, in per capita GDP, California lags behind many regions of America. The income per person here is 47, 401 dollars. In the first place is the District of Columbia. Here, the income per person per year is $ 74, 513. In second place is Connecticut ($ 60, 847 per person).
Low income compared to other states in Utah, West Virginia, and South Carolina. Here they are 36274, 35613 and 35453 dollars per person per year, respectively. Also, incomes are low in Idaho ($ 35, 382), Kentucky (36, 239), Arkansas (36086).
California Industry
California has long embarked on the development of environmentally friendly industries and technologies. In recent years, other states have tried to follow this path, however, the scale of introducing technical innovations is the largest here.
In general, the California industry is diversified. The food, electronic, space, oil, chemical, pharmaceutical, metalworking, furniture, metallurgical and engineering industries are developed. High-tech have a high share.
It is in California that the headquarters of well-known manufacturers of electronic and computer equipment are located.
Energy in California
The development of energy is on the path of increasing introduction of solar, wind, hydro and geothermal energy, which are becoming more competitive in the world market. In 2018, California’s renewable energy goals have become even more ambitious than before: 100% renewable energy in electricity generation by 2045 and 65% by 2030. California leads the United States in terms of speed of development of electric vehicles.
California's aggregate electricity production is second only to the US after Texas.
Traditional electric power also takes place. California produces oil and gas. Imported oil, gas, coal. The state has centers of large gas, oil and energy corporations.
The food industry is represented by winemaking, the production of juices, drinks, beer, alcohol (especially wines), canned food.
Agriculture
California agricultural products are the most expensive in the United States. It is most developed in the Great California Valley. They grow grapes, fruits, vegetables, sugar beets, cotton, rice. Cattle breeding is also developed.
Another agricultural area is the Los Angeles Lowland. Here they grow grapes, tomatoes, herbs, citrus fruits. Dairy farming is developed. Due to the spread of building-up, the area under crops is reduced.
The third agricultural region is the inland valley of the Colorado River - the Imperial. Cotton, vegetables, and grain are grown there; produce meat.
Crop production is of greatest importance (70%), and livestock production accounts for 30%.
The emphasis is on growing long-term products, including those used for the production of canned food. Various California farmers specialize in the production of a single product, that is, they are highly specialized. Wage labor, including Mexican illegal immigrants, is widely used.
California's most developed industry is fruit growing. The maximum volumes are grapes, peaches, plums, oranges, lemons, apricots, pears and walnuts. The production of apples, dates, cherries, tangerines, grapefruits, almonds, olives, avocados, and figs is somewhat smaller, but also significantly.
In livestock farming, the cultivation of dairy cows, pigs, sheep, broilers predominates.
