LA protest violence brings focus to California. The richest US state's economy is bigger than some countries | Reasons, listed

US President Donald Trump deployed the National Guard into Los Angeles to end the ongoing violent protests against his immigration crackdown. This has pitted the western California state, of which LA is the largest city, against the federal government. California is the richest state in the US and cannot be antagonised by any federal government. Its economy is bigger than several US states combined, and surpasses the economies of even some countries.

Amid the sharp focus on Los Angeles protests, here is a look at the economic importance of California for the US.

California’s economy is the biggest in the US

The nominal GDP of California for 2024 was $4.103 trillion, making it the largest economy among the US states.

This is in fact nearly the combined GDP of the next few states' GDP: Texas is at $2.6 tn, New York at $2 tn and Florida at $1.6 tn, according to recent available data.

This means that the rich western state accounts for more than 14 per cent of the total GDP of the US.

Having achieved this with only 12 per cent of the national population, California continues to hold a disproportionate economic might in the US.

California's economy is bigger than some countries'

It is a well-known fact that if California were a country, it would be the fourth-largest economy in the world, just behind the US ($29.18 tn), China ($18.74 tn), and Germany ($4.65 tn).

Its economy would be ahead of Japan and India too.

The per capita GDP of California, estimated to be around $85,340, surpasses that of most large economies.

From tech industry to Hollywood and everything in between: What powers California's economy?

The state is home to the tech mecca of Silicon Valley in the north, and the entertainment industry hub of Hollywood in the south. These and other high-revenue industries are the reason behind its wealth.

Most of the world's top tech companies are headquartered in California, including Google parent Alphabet, Apple, Facebook parent Meta, IBM, Intel and Nvidia.

As per figures from 2023, the technology industry attracted $134 billion in venture capital, which was the highest in the US at the time.

A powerhouse of agriculture

California is also home to the largest agriculture industry in the US, with exports estimated at $24.3 billion in 2023. Its key farm exports include almonds and dairy products.

California leads the US in some of the key agricultural produce, including half of its fruits, vegetables and nuts, as well as more than 80 per cent of strawberries.

Hollywood to electric cars: A diversified economy

The Hollywood-led entertainment industry generates anywhere north of $150 billion every year.

California is also a global tourism magnet, attracting revenues of $150.4 bn in 2023.

Heavy industries and manufacturing are also key to California's economic prowess. These included aerospace and electric vehicles.

Ports in California handle some 38 per cent of US imports.

A giant among US states

As already mentioned, the GDP of California dominates over the next few states. It is double that of New York, and more than half of Texas.

Once home to America's oil boom, California shines in both traditional industries like agriculture, emission-free vehicles, technology and entertainment.

California is home to 78 of Fortune 100 companies and 337 of Fortune 500 companies, which is the highest for any state.

But it is not all fine for Californians, and LA violence may be a result of that

But in spite of all these, California still reels under economic inequality, high living costs, and endemic homelessness.

The LA protests are partially a result of economic disparities in the western state.

Many of those taking part in the protests are also angry at the rich-poor divide in the city.