The latest UCLA Anderson economic forecast for 2024 predicts continued positive growth in California and a diminishing likelihood of a recession nationally. Despite facing similar political and geopolitical risks as the rest of the country, California’s GDP has shown strong growth at a compound annual rate of 3.8% from Q1 to Q3 in 2023.
According to the experts, expansionary fiscal policy, new national industrial policies, and consumer spending have contributed to this trend. However, they also note that higher interest rates may restrain growth in the upcoming year.
In comparison to other large states like Washington, Florida and Texas – which saw significant population gains due to tech industries or migration – California’s per capita income continues its upward trajectory despite challenges such as state government finance issues and homelessness.
Overall, while there are still obstacles ahead for California’s economy including out-migration concerns,the forecast remains optimistic about its robust driving forces leading into 2024.
