If California was its own country, its economy would now rank as the fourth-largest of any nation in the globe, Gov. Gavin Newsom said this week.
Newsom announced the state’s new economic ranking Wednesday after recently released data from the International Monetary Fund and the U.S. Bureau of Economic Analysis indicated that California’s nominal gross domestic product now exceeds Japan’s.
According to the data, California’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion. That places the Golden State behind only the United States at $29.18 trillion, China at $18.74 trillion, and Germany at $4.65 trillion.
“California isn’t just keeping pace with the world — we’re setting the pace,” Newsom said in a statement. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”
Of the top-four global economies, California’s is also the fastest growing, according to data and Newsom’s office. Its nominal GDP grew at a rate of 6% in 2024, outpacing the U.S.’s overall 5.3% rate, China’s 2.6% rate and Germany’s 2.9% rate.
Newsom attributed California’s showing to a growing population and record tourism spending coupled with a high concentration of venture capital and new business ventures. He also touted the strength of the state’s agricultural, high-tech and manufacturing centers.
While celebrating the milestone, Newsom also took a swing at President Trump’s tariff policies.
“While we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration,” he said in a statement. “California’s economy powers the nation, and it must be protected.”
Last week Newsom announced a lawsuit challenging Trump’s executive authority to enact international tariffs without the support of Congress, calling the president’s economic policies a “wrecking ball” to America’s global reputation.
The legal action argues that the International Emergency Economic Powers Act that Trump cited to impose tariffs does not grant the president the ability to unilaterally adopt tariffs on goods imported to the U.S.
“No state is poised to lose more than the state of California,” Newsom when announcing the lawsuit. “That’s why we’re asserting ourselves on behalf of 40 million Americans.”
The last time California advanced in world economic ratings was 2018, when its nominal GDP surpassed the United Kingdom’s to move into fifth place. India’s economy, which is currently $3.90 trillion, is predicted to overtake California’s in 2026, according to current data trends.
Times staff writer Taryn Luna contributed to this report.
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