California strengthens its position as a global economic leader

California's economy continues to lead the nation, as new data highlights its position in innovation, business growth, and AI readiness. The state ranks as the fourth largest economy globally, promoting job creation and economic activity across various sectors.

Governor Gavin Newsom emphasized California's economic success: “California is where a diverse class of dreamers and doers meet more access to venture capital funding, more Fortune 500 companies, and more business starts than anywhere else in the nation. That is how we regularly punch above our weight in economic success on a global scale.”

Recent studies reveal that eight California cities are among the 25 fastest-growing for trade between businesses since January 2025. Additionally, San Francisco, San Jose, and Los Angeles are among the top ten regions in the country ready to launch major AI businesses.

A report by the Public Policy Institute of California (PPIC) indicates that nearly four times more companies have launched their headquarters in California than relocated out of state.

California leads nationally in several categories: #1 in Fortune 500 companies, new business starts, manufacturing, venture capital funding, high-tech business, and agriculture.

The California Competes Tax Credit has opened its first application window for this fiscal year. It aims to invest in key economic sectors that will drive innovation and provide good-paying jobs.