California has now surpassed Japan to become the world’s fourth-largest economy.
According to preliminary data from the US Bureau of Economic Analysis, the state’s nominal gross domestic product (GDP) reached $4.1 trillion in 2024, surpassing Japan’s $4.02 trillion as reported by the International Monetary Fund. California now ranks behind only the United States, China, and Germany in terms of GDP.
The state’s economy saw impressive growth of 6% in 2024, outpacing all three of these countries, as highlighted in the release. Governor Gavin Newsom celebrated the milestone, stating, “California isn’t just keeping pace with the world, we’re setting the pace. Our economy thrives because we invest in people, prioritize sustainability, and believe in the power of innovation.”
However, Newsom expressed concern that California’s economic strength is being undermined by what he called “reckless tariff policies” from the federal administration. He emphasized, “California’s economy powers the nation, and it must be protected.”
With a population of approximately 40 million, California accounted for 14% of the United States’ GDP in 2024, driven by sectors such as Silicon Valley, real estate, and finance.
Last week, Newsom filed a lawsuit against former President Trump regarding the use of emergency powers to impose sweeping global tariffs. Newsom argued that these tariffs have harmed Californian families and businesses, citing disruptions to supply chains, inflated costs, and billions of dollars in damages. The lawsuit claims that Trump’s actions, under the International Economic Emergency Powers Act, were unlawful and required Congressional approval.
