California overtakes Japan to become world’s 4th largest economy: Newsom

(KRON) — California has overtaken Japan and is now the fourth largest economy in the world, according to newly released data cited by Gov. Gavin Newsom’s office. The data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA) was released on Wednesday.

According to Gov. Newsom’s office, the data indicates California’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion. California now ranks only behind the United States, China and Germany in global rankings.

California’s GDP figure, according to Gov. Newsom’s office, is based on state-level GDP data from the BEA.

“California isn’t just keeping pace with the world — we’re setting the pace,” said Gov. Newsom. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”

California’s economy is also growing at a faster rate than the world’s top three economies, Newsom’s office said. In 2024, California’s growth rate of 6% outpaced the U.S. (5.3%), China (2.6%), and Germany (2.9%).

However, the Golden State’s long-term standing is not assured. According to Gov. Newsom’s office, preliminary data indicates that India is projected to surpass California by next year.

The governor also cautioned that the current tariff-based trade policies of the Trump administration could slow California’s economic ascent.

“And, while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration. California’s economy powers the nation, and it must be protected,” Newsom said.

Industries leading California’s economic charge cited by the governor’s office include tourism, startups, access to venture capital funding, manufacturing, high-tech, and agriculture. The state, according to Newsom, also sends over $83 billion more to the federal government than it receives in federal funding.

Last week, Gov. Newsom filed a lawsuit in federal court challenging the president’s use of emergency powers to enact broad-sweeping tariffs.