California exports hit all-time high

State exported $159 billion in 2011, 2 percent ahead of previous record in 2000

Written by
Dean Calbreath
5 p.m., Feb. 10, 2012

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California exported a record $159 billion in goods last year, 11 percent more than in 2010 and 2 percent more than the previous record at the peak of the dot-com boom in 2000, according to a report released Friday by Beacon Economic in Los Angeles.

Manufactured goods, led by electronics products, industrial machinery and medical equipment, rose 7 percent to $102 billion, while non-manufactured goods jumped 16 percent to $20 billion, said the report, based on data by the U.S. Commerce Department.

“Despite a widespread conviction that California has been closed for business, 2011 turned out to be the best year ever for California’s export trade,” said Jock O’Connell, Beacon Economics’ international trade adviser.

O'Connell expects that the exports may grow more sluggishly this year, since the global economy is slowing.

Nearly all major forecasts, including the most recent updates issued by the International Monetary Fund, have been revising downward their 2012 growth expectations for most major economies - including all of California’s principal trading partners," he said.

But Beacon Economics’ founding partner Christopher Thornberg said it's too early to tell what the new year may bring.

“We’re cautious, but not drawing any lines in the sand until we see what January and February have to tell us,” Thornberg says.

Nationwide, exports also grew strongly in 2011, but not as fast as California. Because imports also rose - led by foreign oil and Chinese factory products - the burgeoning U.S. trade deficit grew even larger.

Nationwide, manufactured exports rose to $873 billion last year, but failed to match the pre-recession peak of $912.38 billion in 2008.

In the meantime, manufactured imports soared to $1.6 trillion, topping the $1.5 trillion record in 2008. Even in the high-tech field - which have long been one of America's top export generator - there was a record $99 billion gap between imports and exports, easily topping the past record of $80 billion set in 2010.

"The continued rise in the manufacturing and high tech trade deficits to new records show that these critical sectors keep losing global competitiveness, not gaining it," said Alan Tonelson, research fellow at the U.S. Business and Industry Council. "Without major changes in outsourcing-friendly American trade policies, the manufacturing rebound sought by President Obama will prove disappointing."

California exports hit all-time high | UTSanDiego.com