California’s economy is among the best in the country, a new study finds. Who is no. 1?

California is home to one of the best economies in the nation, according to a new finance study.

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California landed on WalletHub’s list of top 10 state economies in the United States, released Monday.

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Washington state led the pack with a total score of 71.1 out of 100. That’s higher than any other state, the financial company said.

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Utah took the second spot on the list with a total score of 62, followed by Massachusetts in third place with 61.5.

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California ranked No. 5 on the list with a total score of 59.6, beating out New York, Florida and Illinois.

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“A strong state economy doesn’t guarantee success for the state’s residents, but it certainly makes financial success more attainable,” WalletHub analyst Cassandra Happe wrote in an article titled “Best & Worst Economies (2024).“

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“The best state economies also encourage growth by being friendly to new businesses and investing in new technology that will help the state deal with future challenges and become more efficient,” she added.

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Happe said that having a low unemployment rate and high average income can help a state’s residents purchase real estate, pay off debts and save for future expenses.

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Which state has the best economy in the nation?

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That title is reserved for Washington state, according to WalletHub.

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The financial company cited the Pacific Northwest state’s position at the “forefront of new tech” as one of the major reasons for its high ranking.

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The state also ranks high for its population of educated new immigrants and median household income once adjusted for cost of living.

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What are the top 10 state economies in the US?

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These states were among the top 10 economies in the U.S., according to WalletHub:

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1. Washington
2. Utah
3. Massachusetts
4. Texas
5. California
6. Colorado
7. Florida
8. North Carolina
9. Washington D.C.
10. Arizona

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How did WalletHub come up with its rankings?

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WalletHub used April data from the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, the United Health Foundation and several other databases to determine the best and worst economies in the nation.

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The site analyzed a total of 51 places, including 50 states and Washington, D.C., based on three key categories: economic activity, economic health and innovation potential.

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What do you want to know about life in Sacramento? Ask our service journalism team your top-of-mind questions in the module below or email servicejournalists@sacbee.com.

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Brianna Taylor covers affordability on The Sacramento Bee’s service journalism desk, as well as general news. Before joining The Bee in 2021, she reported in Missouri and Maryland. She grew up on the East Coast and graduated from Morgan State University.