Day: March 18, 2023

Visualizing California’s GDP Compared to Countries

This post is by Aran Ali from Visual Capitalist

How California's GDP exceeds ten select countries

California’s GDP Compared to Countries

Comedian Trevor Noah once said America is fifty little countries masquerading as one.

From an economic sense, this might carry some truth. When looking at the economic output of each state, especially the largest and wealthiest ones, they often compare to or even exceed the GDPs of entire nations.

To illustrate, this visual from StatsPanda looks at California’s $3.36 trillion GDP using data from The World Bank and compares it to 10 sizable country economies. Let’s take a closer look.

Sizing Up California’s GDP in 2021

California’s $3+ trillion GDP is an enormous figure in its own right, so it’s no surprise that it is larger than certain nations’ economic output.

But even when comparing with economies like Malaysia, Colombia, and Finland, all among the top 50 countries by GDP, California stands tall.

CountryGDP (2021 USD)
🇲🇾 Malaysia$372B
🇭🇰 Hong Kong$369B
🇻🇳 Vietnam$366B
🇮🇷 Iran$359B
🇵🇰 Pakistan$348B
🇨🇱 Chile$317B
🇨🇴 Colombia$314B
🇫🇮 Finland$297B
🇷🇴 Romania$284B
🇨🇿 Czechia$281B

What’s more, these 10 countries are quite densely populated, with a combined population of 653 million compared to California’s 39 million total.

A Closer Look At California’s Economy

What makes California’s GDP so vast and their economy so powerful?

Relative population is a big factor, as the state is the most populous in the U.S. with roughly 12% of the country’s population calling it home. But since California’s GDP makes up over 15% of the country’s economic output, there (Read more...)

Impending Cancellation of Thousands of Startup Credit Lines

While some of the dust has settled around Silicon Valley Bank’s demise, a number of second and third order effects are still looming. For startup-land, one of the biggest challenges on the horizon is the impending cancellation of startup credit lines. Silicon Valley Bank (SVB) was the largest provider of debt to startups, and still is as the new bank Silicon Valley Bridge Bank (SVBB). So, if the bank still has $6.7 billion dollars of loans out to startups what’s the problem?

The problem is that the majority of deposits have left the bank and aren’t coming back. Without deposits, the bank can’t lend as much. The bank has to maintain certain capital ratios, and with intense scrutiny, will be more conservative with how it uses deposits to make money. Many startups will still be able to keep a credit line, but it’ll likely be much smaller than in the past.

In addition, startups are difficult to underwrite. While the SVBB staff is being paid 50% more than their normal salary to stay on for 45 days, many will inevitably be let go because the bank has many fewer deposits, so it needs many fewer employees. Once a fair number of employees are let go, the volume of underwriting capacity will decrease, and the bank will opt to focus on the higher quality startups. 

Finally, startups have shown they’ll happily move their deposits anywhere, as opposed to a small business owner that wants to work with the bank that’s in (Read more...)