Sacramento– California has overtaken Japan to become the world’s fourth-largest economy, trailing only the United States, China, and Germany, according to new global economic rankings.
Governor Gavin Newsom announced the milestone, citing the latest data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis. California’s nominal GDP reached $4.1 trillion in 2024, surpassing Japan’s $4.02 trillion, Newsom’s office said, as tensions continue between the state and federal trade policies.
“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.”
The state’s economy has experienced impressive growth in recent years. Between 2021 and 2024, California’s nominal GDP grew at an average rate of 7.5 percent, with a 6 percent growth rate in 2024 alone, according to the governor’s office.
California leads the nation in several key sectors, including new business formation, venture capital investment, manufacturing, high-tech, and agriculture. The state is the largest agricultural producer in the U.S. and serves as the hub for manufacturing output, home to more than 36,000 manufacturing firms that employ over 1.1 million Californians, the office noted.
In addition to its economic output, California contributes significantly to national revenue, sending over $83 billion more to the federal government than it receives in federal funding, the statement added.
Despite this economic achievement, Governor Newsom raised concerns about the impact of federal trade policies on California’s economy. On April 16, the state filed a lawsuit against the federal government, challenging the use of emergency powers to impose sweeping tariffs. State officials argue these tariffs pose a threat to California’s economic stability and ongoing growth, Xinhua news agency reported.
“The lawsuit seeks to end President (Donald) Trump’s tariff chaos, which has wreaked havoc on the economy, destabilized financial markets, caused hundreds of billions of dollars in losses, and driven up costs for consumers and businesses,” the governor’s office said. “These harms will only continue to grow, as President Trump’s tariffs are projected to shrink the U.S. economy by $100 billion annually.”
A policy analysis by research firm Trade Partnership Worldwide projects that California could pay over $170 billion in import taxes in 2025 under the current tariff structure. (Source: IANS)
