California has officially leapfrogged Japan to claim the title of the world’s fourth-largest economy, Governor Gavin Newsom announced. Drawing on data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA), the state’s nominal GDP has now reached $4.1 trillion, edging past Japan’s $4.02 trillion.
This milestone places California behind only the United States, China, and Germany in global economic rankings. Newsom attributed the state’s remarkable performance to its emphasis on sustainability, innovation, and investment in human capital. “California isn’t just keeping pace with the world—we’re setting the pace,” he said.
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The IMF’s 2024 World Economic Outlook highlights that California grew at an impressive 6% this year—outperforming major global players including the U.S. (5.3%), China (2.6%), and Germany (2.9%). Over the past four years, the Golden State has maintained an average annual growth rate of 7.5%, underscoring its long-term economic resilience.
From dominating sectors like high technology, manufacturing, and agriculture to leading the nation in new business formation and venture capital investment, California’s economy continues to be a powerhouse. The state is also pushing back against federal tariffs, with Newsom recently filing a lawsuit to challenge trade policies he claims are stifling economic progress.
