The California economy is still booming and could pass the UK this year for 5th place among the world's largest economies in 2017 according to the latest study from the Center for Continuing Study of the California Economy (CCSCE). This is an amazing statistic when you think about it and says volumes about the economic power of the Golden State.

As a California native and longtime Silicon Valley resident, I'm always proud of these kinds of numbers, which indicate a favorable climate for business despite everything naysayers have to say about too many regulations, nightmare traffic, earthquakes, wildfires, and ever-rising housing prices to name just a few factors that can make California look less than golden to those outside the state. 

In the words of economist Stephen Levy, who heads up the CCSCE, "It does say we're doing well. It does say that despite the housing, despite the transportation challenges and despite the air quality, we're kicking (butt)."

In Silicon Valley, things slowed down in 2016, but the trend is still up. For example, a thought piece published earlier this year by SPUR, the San Francisco Bay Area Planning and Urban Research Association, "What's next for the Silicon Valley economy," shows that tech job growth in Silicon Valley was about 3.5% for 2016, which is a drop from the 5% and 6% growth in jobs that we saw from 2012 to 2015. But the article cites this multi-year growth as being a reassuring sign, especially when compared to the late 1990's and early 2000's when the Internet boom and bust created dramatic swings in the economy from year to year.

Joint Venture Silicon Valley President and CEO Russ Hancock provided input for the article.  "Hancock emphasized that the fundamentals in the Valley are still good, and that we aren't headed for a major downturn — but we are headed for a transition. As a "transitioning" economy, our economy shifts every few decades — that's why we're also an "innovation" economy. He thinks that we're at a juncture and we will soon see a lot of jobs move into new industries and sectors, with the biggest growth in machine learning, data and analytics, and automotive technology."

Here in the Silicon Valley office of Womble Carlyle, we're excited about the new industries, companies, and opportunities for partnerships and growth that bubble up from day to day. As these studies note, there are serious issues in California in general and Silicon Valley in particular that need to be addressed – from traffic to housing to economic opportunity for all – but there is much to be encouraged about. These are interesting times!

Hope you're having a great summer. Back at you in August.

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