Sacramento– California has overtaken Japan to become the world’s fourth-largest economy, ranking behind only the United States, China, and Germany, according to the latest data from the International Monetary Fund and the U.S. Bureau of Economic Analysis.
California Governor Gavin Newsom announced the milestone, highlighting the Golden State’s nominal GDP of $4.1 trillion in 2024, surpassing Japan’s $4.02 trillion.
“California isn’t just keeping pace with the world—we’re setting the pace,” Newsom said in a statement. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”
The state’s economy has shown robust growth in recent years, averaging a 7.5% nominal GDP increase from 2021 to 2024, with a 6% growth rate in 2024 alone.
California leads the U.S. in new business starts, venture capital funding, manufacturing, high-tech, and agriculture. The state is the nation’s top agricultural producer and the center for U.S. manufacturing output, with over 36,000 manufacturing firms employing more than 1.1 million Californians, Newsom’s office noted.
In addition, California significantly contributes to national economic growth, sending over $83 billion more to the federal government than it receives in return.
However, despite this economic achievement, Governor Newsom voiced concerns over federal trade policies that he believes threaten California’s continued growth. On April 16, California filed a lawsuit against the federal government, challenging the use of emergency powers to impose sweeping tariffs.
“The lawsuit aims to end President Trump’s tariff chaos, which has destabilized markets, inflicted higher costs on consumers and businesses, and caused hundreds of billions in economic losses,” Newsom’s office said. The state argues that these tariffs could shrink the U.S. economy by $100 billion annually.
A policy analysis by Trade Partnership Worldwide estimates California could pay over $170 billion in import taxes in 2025 under the current tariff structure. (Source: IANS)
