California is now 4th largest economy in the world, new data shows
SUGGESTED COVERAGE: Tariffs continue to impact US economy
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LOS ANGELES - California has surpassed Japan to become the world's fourth-largest economy, with a nominal GDP of $4.1 trillion, new data reveals.
What we know:
California’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion, placing California behind only the United States, China, and Germany in global rankings, according to data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA).
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The milestone was announced by Gov. Gavin Newsom on Wednesday.
The Golden State also leads the nation when it comes to new business starts, venture capital funding, manufacturing, high-tech, and agriculture.
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By the numbers:
In 2024, California’s growth rate of 6% outpaced the U.S. (5.3%), China (2.6%), and Germany (2.9%).
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Over the last four years, the state’s economy grew with an average nominal GDP growth of 7.5% from 2021 to 2024.
Local perspective:
California drives national economic growth, sending over $83 billion more to the federal government than it receives in federal funding.
The state is the leading agricultural producer and the center for manufacturing output in the U.S., with over 36,000 manufacturing firms employing over 1.1 million Californians.
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These firms have created new industries and supplied the world with goods spanning aerospace, computers, electronics, and zero-emission vehicles.
What they're saying:
"California isn’t just keeping pace with the world—we’re setting the pace. Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation," Newsom said. "And, while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration. California’s economy powers the nation, and it must be protected."
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What's next:
Governor Newsom is actively protecting California’s economy by filing a lawsuit against President Trump’s tariffs, which he claims have destabilized markets and increased costs for consumers and businesses.
The lawsuit seeks to end the tariff chaos, projected to shrink the U.S. economy by $100 billion annually.
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The Source: Information for this story is from data provided by the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA) via a press release published by the office of Gov. Gavin Newsom on April 23, 2025.