California has overtaken Japan to become the world’s fourth-largest economy, with its nominal GDP reaching $4.1 trillion, surpassing Japan’s $4.02 trillion, according to data from the International Monetary Fund and the U.S. Bureau of Economic Analysis. This milestone places California behind only the United States, China, and Germany in global economic rankings.
Governor Gavin Newsom announced the achievement, highlighting the state’s leadership in technology, entertainment, manufacturing, and agriculture. With a population nearing 40 million, California experienced a 6% growth rate in 2024, outpacing the U.S. average of 5.3%, China’s 2.6%, and Germany’s 2.9%. Newsom attributed this success to investments in people, sustainability, and innovation.
However, Newsom also expressed concerns over the federal government’s tariff policies, particularly those implemented by former President Donald Trump. He warned that these policies threaten California’s economic interests and have prompted the state to file a lawsuit challenging the legality of the tariffs, arguing that only Congress has the authority to impose them.
Despite challenges such as housing affordability and homelessness, California’s economy continues to thrive, with significant contributions from tourism and other sectors. The state has launched initiatives to boost international tourism, including campaigns aimed at Canadian visitors, whose numbers have declined amid trade tensions.
As California solidifies its position as a global economic powerhouse, state leaders emphasize the importance of protecting its economic interests against federal policies they view as detrimental.
