Inland Southern California Economy Shows Strong Growth

Region is now 5th largest metropolitan area in the state in terms of economic output, UCR report shows

An image of downtown Riverside

Inland Southern California is now the fifth largest metropolitan area in the state in terms of economic output.

RIVERSIDE, Calif. (www.ucr.edu) – The Inland Southern California economy grew at an impressive pace in the fourth quarter of 2015, bucking trends at the state and national level by a significant margin, according a report released today by the University of California, Riverside’s School of Business Administration Center for Economic Forecasting and Development.

The region’s affordability advantage over the coastal areas of Southern California, coupled with its strong logistics sector, continue to be the major drivers of economic growth in the region.

According to center estimates, in the fourth quarter of 2015, real gross metropolitan product (GMP) for Inland Southern California grew at a 3.7% annualized rate over the third quarter. By comparison, the center estimates that California’s real gross state product grew by just 1.9% in the fourth quarter of last year, and the U.S. Bureau of Economic Analysis puts national gross domestic product growth at 1.4%. This UCR report is the only estimate of Inland Southern California GMP that is compiled and released on a quarterly basis.

Strong growth in Inland Southern California’s economic output can be attributed primarily to the logistics sector. This industry made the largest contribution to overall output growth in the region, making up 1.2 percentage points, or roughly one-third, of the fourth quarter growth in 2015. This growth is expected to continue as Amazon makes plans to open its fifth fulfillment center in Inland Southern California, taking advantage of the region’s more affordable land prices and proximity to ports and major markets.

“Inland Southern California is now the fifth largest metropolitan area in the state in terms of economic output and will continue to be among the fastest growing regions in coming years as its economy grows and as coastal home prices climb, driving increasing numbers of Southern California residents to the area in search of more affordable housing,” said Christopher Thornberg, director of the Center for Economic Forecasting and Development.

The Center for Economic Forecasting and Development releases its Inland Southern California Gross Metropolitan Product Report on a quarterly basis. The April 2016 report, which provides estimates for the fourth quarter of 2015, is available to download.

Media Contact


Tel: (951) 827-4580
E-mail: sarah.nightingale@ucr.edu
Twitter: snightingale

Additional Contacts

Christopher Thornberg
Tel: (310) 739-3286
E-mail: chris.thornberg@ucr.edu

Victoria Pike Bond, Director of Marketing & Communications, Center for Economic Forecasting
Tel: (415) 488-7195
E-mail: victoria.bond@ucr.edu

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