According to Milken Institute research, California is significantly less exposed to potential fallout from a European recession than many other states.
- A 10% decline in U.S. exports to the European Union would only slow GDP growth by 0.2%
- Utah and South Carolina are the most vulnerable states with exports to the European Union equaling 4.2% and 3.5% of their state GDPs respectively.
- South Carolina’s has significant auto production connections to the European Union.
- Europe is a significant importer of Utah gold.
- Made-in-California exports to the European Union comprise only 16% of the state’s total exports and equal less than 1.5% of its GDP.
- California exports could also be affected indirectly if European financial disruptions slowed growth of BRIC economies.t
The Golden State is more sensitive to North American and Pacific Rim economies.