News Summary
Business leaders from various sectors are gathering in Sacramento for the California Business Outlook event, addressing key issues such as international trade, tariffs, climate change, and retail theft affecting the state’s economy. With insights from industry experts and a forecast of potential economic contraction, the event aims to foster collaboration and innovative strategies for resilience in California’s evolving economic landscape.
Sacramento, California – Business leaders from various sectors are convening in Sacramento for the California Business Outlook event to discuss pressing challenges and innovative strategies in trade and economic development. The event will cover critical topics including international trade, tariffs, climate change, and retail theft, which are shaping California’s economic landscape.
The event, co-sponsored by groups such as the Sacramento Host Committee, the California New Car Dealers Association (CNCDA), and the California Restaurant Association, will open with remarks from CalChamber President and CEO Jennifer Barrera. Among the highlights of the day are discussions led by various experts and panels addressing the prevailing issues affecting California’s economy.
Attendees will hear from Lieutenant Governor Eleni Kounalakis during a fireside chat with Caroline Beteta, President and CEO of Visit California, where they will delve into the dynamics of international trade and the impact of tariffs. Liane Randolph, the chair of the California Air Resources Board, will also engage in conversations, responding to questions posed by Barrera.
In the lunch session, Dr. Christopher Thornberg, founding partner of Beacon Economics, will provide an international economic forecast, offering insights into trends and challenges that could affect California’s business environment moving forward. The agenda also encompasses a focus on retail theft, led by Sacramento County District Attorney Thien Ho, who will address the implications of Proposition 36, a statewide measure aimed at increasing penalties for drug and theft crimes.
A report from UCLA Anderson has predicted significant shifts in California’s economic outlook, suggesting a contraction may occur later this year due to factors such as global tariffs and immigration raids affecting critical sectors. The report anticipates a period of heightened volatility and uncertainty in the state’s economy throughout the second quarter of 2025.
Furthermore, California’s economic growth is projected to lag behind the national average in 2025, with several quarters expected to experience negative job growth. The unemployment rate in California is forecasted to peak at 6.1% this year, with an average rate of 5.8% anticipated in 2025. The entertainment industry, alongside cutbacks in the tech sector, is expected to witness significant job losses, further complicating the state’s economic recovery.
The agricultural sector is similarly affected, as tariffs implemented by former President Trump disrupt crop trading and delay essential equipment purchases. These tariffs are contributing to increased operational costs across various sectors that rely on imported materials. Additionally, the trade and logistics industry in Southern California is expected to suffer, leading to a notable impact on employment and investment opportunities.
Projections indicate that cargo volumes at the Port of Los Angeles may decline by at least 10%, with further decreases expected throughout the year. Economic interconnections between California and Canada are of particular interest, leading Visit California to initiate a $5 million campaign aimed at attracting Canadian tourists, hoping to bolster the local economy amidst ongoing uncertainties.
Small and medium-sized businesses are particularly vulnerable to the rising costs driven by tariffs, emphasizing the need for strategic planning and support from leaders. Economists are raising alarms about the implications of a shrinking labor force in California, underscoring it as a critical issue for maintaining future economic growth and stability.
With leaders stressing the importance of collaboration and strategic responses to current challenges, the California Business Outlook event aims to equip participants with the insights necessary to navigate the complexities of the evolving economic landscape and foster a resilient business community in the state.
Deeper Dive: News & Info About This Topic
- Los Angeles Times: California’s Economy Forecast
- Wikipedia: International Trade
- KCRA: California Businesses and Tariffs
- Google Search: California tariffs
- CalChamber: Trump Tariffs Legal Challenge
- Google Scholar: California Economic Outlook
- Reuters: Economic Growth Forecast
- Encyclopedia Britannica: Tariffs
- TD Economics: Quarterly Economic Forecast
- Google News: California Economy
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
