California has now become the fourth biggest economy in the world, moving ahead of Japan. Governor Gavin Newsom shared the news on Thursday, using data from the International Monetary Fund and the U.S. Bureau of Economic Analysis.
The state’s economy reached $4.1 trillion, while Japan’s stood at $4.02 trillion. This means only the United States ($29.18 trillion), China ($18.74 trillion), and Germany ($4.65 trillion) have bigger economies than California.
California has nearly 40 million people and is a major hub for technology, entertainment, agriculture, and manufacturing in the U.S. Newsom said California is leading the way by investing in people, focusing on sustainability, and supporting innovation.
In 2024, California’s economy grew by 6%, which is faster than the U.S. overall (5.3%), China (2.6%), and Germany (2.9%).
This latest milestone comes six years after California moved past the United Kingdom to become the world’s fifth largest economy.
However, Governor Newsom also warned that federal policies, especially tariffs pushed by the Trump administration, could harm California’s economy. He stressed that California’s success is important for the entire country and should be protected.
