California's economy grew at a 1.2% annual rate to start 2024, the lowest since 2022's fourth quarter, ranking 29th among states. This slowdown reflects a national trend with the median state GDP growth at 1.4%. Texas and Florida outperformed California in this period.
The Federal Reserve's high interest rates aimed at cooling down an overheated economy have had repercussions on business output, impacting California's growth rate. In comparison to the previous quarter, where California grew at a 3.1% yearly pace, the recent slowdown is evident. Nationwide, most states experienced declines in GDP growth.
California's decline in GDP growth by 1.9 percentage points at the beginning of 2024 reflects a broader national trend of economic slowdown. Notable gainers were Idaho, Nevada, and Oklahoma, while some states, like North Dakota and South Dakota, witnessed significant declines in GDP growth.
Texas and Florida, as economic rivals to California, also experienced declines in GDP growth rates at the beginning of 2024, ranking lower than in the previous quarter. This suggests a general slowdown in business expansion among the major states in the country.
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