California’s economy is continuing to outperform the nation as a whole, but thanks to anticipated economic slowing in the United States and globally, the state will likely start seeing some negative impacts by the end of next year, according to a UCLA Anderson Forecast released Wednesday.

In his report on the state, UCLA Anderson Forecast Director Jerry Nickelsburg wrote that California’s unemployment rates remain “extremely low,” particularly in the largest job markets. And while the U.S. gross domestic product has slowed, California’s has been growing at a 4% annual rate.