CALIFORNIA – Governor Gavin Newsom announced April 23, that California has officially overtaken Japan to become the world’s fourth-largest economy, according to new data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA).
The IMF and BEA determined that California’s nominal Gross Domestic Product (GDP) reached $4.1 trillion, surpassing Japan’s $4.02 trillion.
This places California behind the United States, China, and Germany in global rankings.
Photo credit: Governor Gavin Newsom‘Progress is threatened by the reckless tariff policies’
Newsom said California’s economy powers the nation, and it must be protected.
“And, while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration,” said Newsom in a statement.
The state recently filed a lawsuit against the Trump Administration, arguing that President Donald Trump’s use of emergency powers to impose sweeping tariffs is unlawful and is projected to shrink the U.S. economy by $100 billion annually.
California’s growth rate outperformed the U.S., China and Germany
According to Newsom’s office, California’s economy is growing at a faster rate than the world’s top three economies.
“In 2024, California’s growth rate of 6% outpaced the top three economies: U.S. (5.3%), China (2.6%) and Germany (2.9%),” said the news release.
It also noted that preliminary data indicates India is projected to surpass California by 2026.
Recent record high tourism spending
Newsom’s office attributes California’s growing economy to record high tourism spending, being the top state for new business starts, and other factors.
“The Golden State’s manufacturing firms have created new industries and supplied the world with manufactured goods spanning aerospace, computers and electronics, and, most recently, zero-emission vehicles,” said the news release.
California also sends over $83 billion more to the federal government than it receives in federal funding which drives national economic growth, according to the office.
Despite California’s status as the world’s fourth-largest economy, it faces a significant homelessness crisis.
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