We can all agree that California is an extraordinary place. Beyond the best climate in the nation, we have exceptional economic advantages, including Silicon Valley and Biotech Beach. With the right reforms, policymakers can unlock these advantages and reignite the California Dream.
To listen to Gov. Gavin Newsom, California is still the nation’s economic leader. In his April 9 news release, he crows, “California continues to outperform every other state.” Rosy reports from politicians are not an accurate barometer of real conditions.
According to the latest Bureau of Economic Analysis data, California’s economy expanded 5% in 2025. This was the 15th fastest rate in the country – not the fastest, as Newsom crows. It was faster than Texas (4.9%) but slower than Florida (6.3%).
Still, 15th is a top-third growth performance, not bad. But California’s longer-term growth comparisons are less favorable. Relative to 2020, for instance, the average annual growth rate in California was the ninth slowest of all the states – it’s in the bottom 10!
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
California’s Economy: Strong Claims, Weak Foundations
Wayne Winegarden and Kerry Jackson
We can all agree that California is an extraordinary place. Beyond the best climate in the nation, we have exceptional economic advantages, including Silicon Valley and Biotech Beach. With the right reforms, policymakers can unlock these advantages and reignite the California Dream.
To listen to Gov. Gavin Newsom, California is still the nation’s economic leader. In his April 9 news release, he crows, “California continues to outperform every other state.” Rosy reports from politicians are not an accurate barometer of real conditions.
According to the latest Bureau of Economic Analysis data, California’s economy expanded 5% in 2025. This was the 15th fastest rate in the country – not the fastest, as Newsom crows. It was faster than Texas (4.9%) but slower than Florida (6.3%).
Still, 15th is a top-third growth performance, not bad. But California’s longer-term growth comparisons are less favorable. Relative to 2020, for instance, the average annual growth rate in California was the ninth slowest of all the states – it’s in the bottom 10!
Read the entire op-ed in RealClearPolitics.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.