The figure below shows that California ranks among the world's ten largest economies. California's Economy Is About One-Eighth of the Nation's Given that California's economy is one of the world's largest, it is only natural that it comprises a large share of the nation's economy.
Personal income is the broadest measure for which reliable current data are readily available.
Based on personal income, the figure shows that California's share of the nation's economy in 1994 is about 12 percent, or roughly one-eighth. California's share increased steadily throughout the 1980s and most of the 1970s, hitting a peak of over 13 percent in 1990. Since then, however, California's share has fallen somewhat, reflecting the state's recent severe recession and sluggish economic recovery. The basic well-being of a state's population is in part related to its income levels. Income levels, for example, can be reflective of the types of job opportunities available in a state, and influence the amounts and types of goods and services that people can afford.