California Surpasses Japan to Become the World's Fourth-Largest Economy
California has officially overtaken Japan to become the world’s fourth-largest economy, with its GDP reaching $4.1 trillion in 2024, surpassing Japan’s $4.02 trillion, according to newly released data from the IMF and the U.S. Bureau of Economic Analysis. Governor Gavin Newsom celebrated the achievement, stating, "California isn’t just keeping pace with the world—we’re setting the pace," highlighting the state's rapid economic growth, which has outpaced that of the U.S., China, and Germany. In 2024, California's economy grew by 6%, which is significantly higher than the growth of the world’s top three economies.
The Golden State has become a leader in innovation, agriculture, and manufacturing, with Silicon Valley, high-tech sectors, and real estate driving much of its success. However, Newsom has expressed concerns about the potential harm from President Trump’s tariffs. "While we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration," he said, stressing that California’s economic power is crucial for the nation. He recently filed a lawsuit challenging the Trump administration's tariff policies, which he argues have caused significant harm to the state’s economy by disrupting supply chains and inflating costs.
With a population of around 40 million, California represents 14% of the U.S. GDP, making it a key economic engine. Despite its impressive growth, Newsom warned that the ongoing trade war, particularly with China and other major trade partners, could threaten California's future prosperity. "California’s economy powers the nation, and it must be protected," he added, calling for action to safeguard the state's economic standing on the global stage.
