CA Economy Outpacing US

The California economy or the U.S. economy --- which will grow faster in 2011? An economic expert from corporate America is betting on California.

Now the seventh-largest economic superpower in the world, California may grow faster than the United States next year, according to Dana Johnson, a chief economist from Comerica Inc., who expresses optimism.

"California tends to be more cyclically sensitive than the national economy, suffering more in downturns but growing more rapidly during expansions," said Johnson.

"With California further along in rebalancing its housing sector than the nation, the odds are growing that later this year or early in 2011, the state will get a bigger boost from homebuilding and could begin outperforming national trends."

California’s unemployment rate fell during previous recoveries, compared with the U.S. average, as the state added jobs at a quicker pace than the United States.  Today, the California housing market is showing signs of improvement with rising prices and dwindling foreclosures.

The number of residential building permits being issued in California is outpacing the U.S., and the massive $2-trillion economy in California shows no signs of slowing down.

California has a track record of doing worse in recessions than the U.S., but the Golden State does better during booms than the rest of the nation, as stated recently by Jed Kolko, an economist with the Public Policy Institute of California.

When California's economy recharges, like it is doing now, it does so with larger costs in tow for consumers and businesses than anywhere else.  California, in essence, must flex a muscle twice as big as others to be seen as strengthening.

The fact that California's economy is growing stronger encourages many, including other American states, who still follow California in many respects.  California still leads.