California overtakes Japan as world's fourth-largest economy

Governor Gavin Newsome | Facebook Website

California has moved past Japan to become the world's fourth-largest economy, as confirmed by newly released data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA). California's nominal GDP reached $4.1 trillion, exceeding Japan's $4.02 trillion. It now stands behind the United States, China, and Germany in global economic ranking.

Governor Gavin Newsom shared the news, emphasizing California's economic strength. "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."

In 2024, California outpaced the growth rates of the top three global economies, growing by 6% compared to the U.S.'s 5.3%, China's 2.6%, and Germany's 2.9%. Over the past four years, California's economy experienced an average nominal GDP growth of 7.5%. However, projections show India might surpass California by 2026.

California plays a crucial role in the U.S. economy. It boasts a growing state population, record-high tourism spending, and is the nation's leading state in new business starts, venture capital funding, and sectors like manufacturing, high-tech, and agriculture. The state contributes over $83 billion more to the federal government than it receives in federal funds. With over 36,000 manufacturing firms, California is at the forefront of national manufacturing output, employing more than 1.1 million people.

Governor Newsom is actively defending California's economy. He recently filed a lawsuit challenging the president's emergency power use to impose extensive tariffs affecting states, consumers, and businesses. The lawsuit aims to halt the tariffs, arguing they have disrupted the economy, destabilized financial markets, and increased costs for consumers and businesses, potentially reducing the U.S. economy by $100 billion annually.