California would be the eighth largest economy in the world if it were a independent nation.
California's once-booming export sector is continuing a deep slide, according to an analysis of federal data by the University of California's Sacramento Center.
The weak international economy is dampening demand for California's agricultural products and other goods, Jock O'Connell, a consultant to the UC center said.
California exports totaled $9.5 billion in May, 25.2 percent below the $12.7 billion in goods the state shipped abroad in May of last year. "The May export numbers offer no encouragement that economic recovery will be a near-term thing," O'Connell said. "These were the lowest California export totals for the month of May since 2004."
California's manufactured exports fell by 28.0 percent in May, while agricultural goods and other non-manufactured exports shrunk by 23.3 percent. Re-exports of goods previously imported into the state were off by 15.4 percent.
On a year-to-date basis, California exports are down by 22.6 percent compared to last year when the state's exports totaled $59.9 billion. So far this year, the state's exports have amounted to just $46.4 billion.
Imports through California ports have been hit even harder. The UC analysis of Commerce Department data showed that the value of foreign goods entering the United States through California dropped by 31.7 percent in May.
Economists define a depression as a 10% decline in GDP from peak to trough. We know California's trade is already in a depression since exports are down 25.2% and imports are down 31.7%.
In addition to imports and exports being down significantly, California's tax receipts are down approximately 11%. The drop of over $10 Billion dollars is the largest drop EVER!
Government spending makes up a material part of California's economy. Due to declining revenues, massive cuts and government shut downs are foreseeable.....the impact on the economy will be unprecedented and will likely confirm California's economic Depression.