California’s economy has overtaken Japan’s, making it the fourth-largest in the world, according to recent data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA). Governor Gavin Newsom announced the milestone on Wednesday, revealing that California’s nominal gross domestic product (GDP) reached $4.1 trillion, surpassing Japan’s $4.02 trillion. This places California behind only the United States, China, and Germany in global economic rankings.
Governor Newsom attributed the state’s economic success to its focus on innovation, sustainability, and investment in people. “California isn’t just keeping pace with the world—we’re setting the pace,” Newsom stated, emphasizing the importance of protecting the state’s economy from federal tariff policies. He criticized President Trump’s tariff measures, describing them as a threat to California’s economic progress.
California’s economy grew at a rate of 6% in 2024, outpacing the growth rates of the United States, China, and Germany. The state’s population also increased by nearly 250,000 people in 2024, contributing to its economic expansion. Newsom highlighted the state’s strong sectors, including agriculture, high-tech, and manufacturing, as key drivers of growth.
While celebrating the achievement, Newsom also announced a lawsuit against President Trump, challenging his authority to impose international tariffs without congressional approval. The lawsuit argues that the tariffs, enacted under the International Emergency Economic Powers Act, are unconstitutional and could harm California’s economy.
Looking ahead, experts predict that India’s economy, currently at $3.9 trillion, could surpass California’s by 2026 if current trends continue.
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