California, October 15, 2025
News Summary
California has officially surpassed Japan to become the world’s fourth-largest economy, achieving a nominal GDP of $4.1 trillion at the end of 2024. This significant milestone highlights California’s impressive growth rate of 6%, outperforming both the U.S. and Japan. Governor Gavin Newsom celebrated this achievement, citing investments in workforce and sustainability as key contributors. Despite challenges such as high living costs and a homelessness crisis, California’s economic resilience underscores its critical role on the global stage.
California has officially surpassed Japan to become the world’s fourth-largest economy, with a nominal gross domestic product (GDP) reaching $4.1 trillion at the end of 2024. This new ranking comes as California now sits behind only the United States, which has a GDP of $29.18 trillion, China at $18.74 trillion, and Germany, which has a GDP of $4.65 trillion.
In 2024, California experienced an impressive growth rate of 6%, outpacing the U.S. growth rate of 5.3%, China’s growth at 2.6%, and Germany’s growth of 2.9%. Governor Gavin Newsom announced the rankings, emphasizing California’s leadership role in the global economy and asserting that the state is not just keeping pace but setting the pace.
Several factors have contributed to this remarkable economic performance in California. Significant investments in the workforce, a commitment to sustainability, and a strong emphasis on innovation have all played essential roles. Despite facing challenges, such as an affordable housing crisis, California’s population continues to grow, mainly due to immigration and natural birth rates.
The state’s economy is known for its diverse sectors; California leads the technology sector, employing roughly 20% of its workforce in tech-related jobs. Additionally, California maintains its status as the largest agricultural producer in the U.S., with exports of approximately $24.3 billion worth of commodities recorded in 2023.
However, California’s contribution to the U.S. federal system is notable as well. The state contributes $83 billion per year more in federal taxes than it receives in federal support, underscoring its economic might. In a move to protect California’s interests, Newsom’s administration filed a lawsuit against the Trump administration over tariff policies believed to threaten the state’s economic stability.
California’s prior global ranking was fifth, achieved in 2017, and it climbed to fourth place in 2023 before reclaiming this spot in early 2025. Economic analysts point out that factors such as fluctuations in currency exchange rates, particularly the recent weakening of the Japanese yen against the dollar, may also have influenced California’s rise.
Despite these achievements, California is not without its challenges. The state faces high living costs and a significant homelessness crisis. Additionally, the International Monetary Fund (IMF) has issued a cautious outlook for global economic growth, noting risks like prolonged uncertainty, protectionism, and potential corrections in financial markets.
In summary, California’s economic milestones signify not only its recovery and growth post-pandemic but also its resilience in the face of ongoing challenges, showcasing its critical role on the global stage.
FAQ
What is California’s GDP as of the end of 2024?
California’s nominal gross domestic product (GDP) reached $4.1 trillion at the end of 2024.
How does California’s economic size compare to that of Japan?
This figure surpasses Japan’s nominal GDP of $4.02 trillion.
What are the rankings of the world’s largest economies?
California now ranks behind only the United States ($29.18 trillion), China ($18.74 trillion), and Germany ($4.65 trillion) in terms of economic size.
What was California’s growth rate in 2024?
The state experienced a growth rate of 6% in 2024, outperforming the U.S. (5.3%), China (2.6%), and Germany (2.9%).
What are some key factors contributing to California’s economic performance?
Factors contributing to California’s economic performance include significant investments in people, a focus on sustainability, and innovation.
What challenges does California face despite its economic growth?
Despite improving economic indicators, the state faces ongoing challenges including high living costs and a substantial homelessness crisis.
Key Features
| Feature | Details |
|---|---|
| California’s GDP | $4.1 trillion |
| Economic Rank | Fourth largest in the world |
| Growth Rate | 6% in 2024 |
| Comparison with Japan | Surpassed Japan’s GDP of $4.02 trillion |
| Contributions to Federal Taxes | $83 billion more in federal taxes than received |
| Export Value of Commodities | $24.3 billion in 2023 |
| Technology Workforce | 20% of the state’s workforce |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: California’s Economy is Now the 4th Largest in the World – Or Is It?
- Visual Capitalist: Mapped – The World’s Largest Economies
- Business Insider: California Economy Now Fourth Largest, Surpassing Japan
- Wikipedia: Economy of California
- Google Search: California Economy
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
