California economy now the world's fourth-largest, overtaking Japan

If California was its own country, its economy would now rank as the fourth-largest of any nation in the globe, Gov.Gavin Newsom said this week.

Newsom announced the state’s new economic ranking Wednesday after recently released data from the International Monetary Fund and the U.S.Bureau of Economic Analysis indicated that California’s nominal gross domestic product now exceeds Japan’s.According to the data, California’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion.

That places the Golden State behind only the United States at $29.18 trillion, China at $18.74 trillion, and Germany at $4.65 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.”Of the top-four global economies, California’s is also the fastest growing, according to data and Newsom’s office.

Its nominal GDP grew at a rate of 6% in 2024, outpacing the U.S.’s overall 5.3% rate, China’s 2.6% rate and Germany’s 2.9% rate.California California’s population grew by almost a quarter of a million in 2024, according to the U.S.

Census Bureau.Experts say the figures represent an important turnaround.Newsom attributed California’s showing to a growing population and record tourism spending coupled with a high concentration of venture capital and new business ventures.

He also touted the strength of the state’s agricultural, high-tech and manufacturing centers.While celebrating the milestone, Newsom also took a swing at President Trump’s tariff policies.“While we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration,” he said in a statement.“California’s economy powers the nation, and it must be protected.” Business Amid news of visa cancellations and deportations, state ...