California has reached a major economic milestone by officially becoming the fourth largest economy in the world, surpassing Japan, Governor Gavin Newsom announced. With a nominal Gross Domestic Product (GDP) of $4.1 trillion in 2024, the state now ranks behind only the United States, China, and Germany, according to figures from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA).

 

"California is not just keeping pace with the world — we’re setting the pace," Newsom stated, attributing the state’s growth to investments in people, sustainability, and innovation. The Golden State posted a 6% growth rate this year, outpacing the world’s three largest economies: the U.S. (5.3%), China (2.6%), and Germany (2.9%).

 

While celebrating the economic progress, the Democratic governor warned of the risks posed by former President Donald Trump’s tariff policies. Last week, California filed a lawsuit against the Trump administration over the imposed tariffs, becoming the first state to take the matter to federal court.

 

Newsom also urged trade partners not to retaliate against California-made products. The state, home to the largest ports on the U.S. West Coast, leads the nation in both agricultural and manufacturing output, with over 36,000 manufacturing firms employing more than 1.1 million workers.