California surpasses Japan as world’s 4th-largest economy

SACRAMENTO — California has officially overtaken Japan to become the world’s fourth-largest economy, according to newly released data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA). Governor Gavin Newsom announced the milestone, highlighting the state’s economic strength and growth.

“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. 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,” Newsom said.

The IMF’s 2024 World Economic Outlook data and BEA figures show California’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion. This places California behind only the United States, China, and Germany in global rankings. California’s economy is growing at a faster rate than the world’s top three economies, with a 6% growth rate in 2024, outpacing the U.S. (5.3%), China (2.6%), and Germany (2.9%).

California’s economic success is attributed to its strong growth over the past four years, with an average nominal GDP growth of 7.5% from 2021 to 2024. The state is the nation’s leader in new business starts, venture capital funding, and sectors such as manufacturing, high-tech, and agriculture. California also contributes significantly to the federal government, sending over $83 billion more than it receives in federal funding.

Governor Newsom is actively working to protect California’s economy. Last week, he filed a lawsuit in federal court challenging the president’s use of emergency powers to enact tariffs. The lawsuit aims to end what Newsom described as “tariff chaos,” which he claims has destabilized markets and inflicted higher costs on consumers and businesses. The tariffs are projected to shrink the U.S. economy by $100 billion annually.

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