California’s economy will again grow faster than...

California’s economy will again grow faster than the rest of the country in 1989, aggravating the state’s transportation and housing problems, Bank of America said in its annual state economic forecast. California’s real gross state product will grow 3.5% in 1989, said Frederick Cannon, vice president and senior economist at the bank. Although that is slower than the 4.8% growth expected in 1988 and the 6.2% growth in 1987, it will be 0.7% faster than the U.S. real gross national product, Cannon said.