California Governor Gavin Newsom announced on Wednesday (April 23) that according to the latest data released by the International Monetary Fund (IMF) and the Bureau of Economic Analysis (BEA), California has officially surpassed Japan to become the world’s fourth largest economy. This marks a new milestone for California.
“California not only keeps pace with the world, but also leads global trends. Our economy thrives because we invest in people, prioritize sustainable development, and believe in the power of innovation,” Newsom said.
The California government stated in a press release on its website that according to IMF and BEA data, in 2024, California’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion. In the global ranking, California is only behind the United States ($29.18 trillion), China ($18.74 trillion), and Germany ($4.65 trillion), ranking fourth. Japan ranks fifth, while India ranks sixth ($3.9 trillion), and the United Kingdom ranks seventh ($3.64 trillion).
The press release also mentioned that not only has California risen to become the world’s fourth largest economy, but the state’s economic growth rate is faster than the top three largest economies in the world. In 2024, California’s growth rate was 6%, surpassing the top three economies: the United States (5.3%), China (2.6%), and Germany (2.9%). The press release stated that California’s success is long-term – the state’s economy has shown strong growth over the past four years, with an average nominal GDP growth rate of 7.5% from 2021 to 2024. Preliminary data suggests that India is expected to surpass California by 2026.
California’s economic drive comes from various sectors including technology, agriculture, services, and entertainment.
California is a major agricultural region in the United States and a center for manufacturing, with over 36,000 manufacturing companies providing employment to over 1.1 million Californians.
The press release highlighted that California’s manufacturing companies have created new industries and provided the world with products spanning aerospace, computers, electronics, and the latest zero-emission vehicles.