California has regained its position as the fifth largest economy in the world, federal data released Friday show.
The Golden State’s gross domestic product exceeded $2.7 trillion last year, a gain of $127 billion from 2016, according to the data from the U.S. Bureau of Economic Analysis.
That pushed the state of 40 million people up one spot from sixth place last year, topping the United Kingdom, which has a population of about 65 million. The U.K.’s economic output, meanwhile, was impacted by its bid to leave the European Union.
The growth was generated across all economic sectors except agriculture, and was led by the financial services and real estate and information sectors, including many technology companies, the California Department of Finance’s chief economist told the Associated Press.
“We have the entrepreneurial spirit in the state, and that attracts a lot of talent and money,” Sung Won Sohn, an economics professor at California State University Channel Islands, told the wire service. “And that’s why, despite high taxes and cumbersome government regulations, more people are coming into the state to join the parade.”
California’s economy makes up 14.3 percent of the entire U.S. GDP, the federal data show.
The state’s GDP was previously ranked as the world’s fifth largest in 2002, but it subsequently slid as low as 10th in 2012 after the Great Recession.
Now, it’s only surpassed by the U.S., China, Japan and Germany. The economies of the U.K. and India both trail the state’s by more than $120 billion.
Texas claims the second-largest state GDP with $1.7 trillion, while New York falls third with $1.5 trillion.