By SDCN Staff
Sacramento, CA–Governor Gavin Newsom announced that California has officially overtaken Japan to become the world’s fourth-largest economy, according to newly released data from the International Monetary Fund and the U.S. Bureau of Economic Analysis.
According to the International Monetary Fund’s 2024 World Economic Outlook data and Bureau of Economic Analysis data, California’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion, placing the state behind only the United States, China, and Germany in global rankings. California’s GDP figure is based on the latest state-level GDP data from the Bureau of Economic Analysis.
“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,” Governor Newsom said.
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: the U.S. (5.3%), China (2.6%), and Germany (2.9%). California’s success is long-term — the state’s economy grew strongly over the last four years, with an average nominal GDP growth of 7.5% from 2021 to 2024. Preliminary data indicates India is projected to surpass California by 2026.
With an increasing state population and recent record-high tourism spending, California is the nation’s top state for new business starts, access to venture capital funding, and manufacturing, high-tech, and agriculture.
California drives national economic growth and sends over $83 billion more to the federal government than it receives in federal funding. The state is the leading agricultural producer in the country and is also the center for manufacturing output in the United States, with over 36,000 manufacturing firms employing over 1.1 million Californians.
The Golden State’s manufacturing firms have created new industries and supplied the world with manufactured goods spanning aerospace, computers and electronics, and zero-emission vehicles.
Newsom filed a lawsuit in federal court challenging President Trump’s use of emergency powers to enact broad-sweeping tariffs that hurt states, consumers, and businesses.
The lawsuit seeks to end Trump’s tariffs, which, according to Newsom ‘has wreaked havoc on the economy, destabilized the stock and bond markets, caused hundreds of billions of dollars in losses, and inflicted higher costs for consumers and businesses.’
“These harms will only continue to grow, as President Trump’s tariffs are projected to shrink the U.S. economy by $100 billion annually,” Newsom stated.
