The California economy is currently roaring along, having apparently more than recovered from the Great Recession and the real estate market crash, but some are wondering if the state can maintain its current level of activity. California is currently outperforming the country in growth in jobs and gross domestic product; however, the Chinese market appears to be stumbling, which is reminding some of very tough times that took place just a few years ago.
The state tends to have the highest highs and the lowest lows when it comes to its economy. Right now, California is riding high on its incredible economic growth, but the state was also the hardest hit during the recent economic downturns. What’s of particular worry is that the most optimistic economic predictions are usually achieved right before a crash. Additionally, since World War II, economic expansions tend to last for seven years, meaning that the state may be headed for bump in the road.
However, this does not necessarily mean that the state is about to fall into an economic downturn. It may simply be that it cannot continue to improve upon its current level of very strong growth. Further, the recent upheaval in the financial markets that resulted from worries about China’s economy would have to go on for months to have a significant impact on the overall economy. The director of the A. Gary Anderson Center for Economic Research at Chapman University indicated that financial markets tend to fluctuate as a matter of course, but the economy as a whole rarely turns on a dime.
