(Image Credit: IMAGN) Stanislaus County, CA, USA; California Governor Gavin Newsom (C), and former Los Angeles Mayor Antonio Villaraigosa (L) meet with NorCal Carpenters Union workers along the construction of the Battery Energy Storage Systems (BESS) for the future site of Proxima Solar Farm in Stanislaus County, California, USA, 19 May 2023. The Governor unveiled legislation to speed up construction for a streamlined process and to expedite court review on legal challenges that often tie up projects. The project is expected to create 300 construction jobs and generate $35 million in local revenue. The project is expected to be operational by December, could power 60,000 homes in the surrounding region and can generate up to 210 megawatts of clean, renewable energy and 177 megawatts of better energy storage. Mandatory Credit: John G. Mabanglo/Pool via USA TODAY NETWORK
Sacramento, California – California has officially surpassed Japan to become the world’s fourth-largest economy, Governor Gavin Newsom announced today, citing new data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA).
According to the IMF’s 2024 World Economic Outlook and the latest BEA data, California’s nominal gross domestic product (GDP) reached $4.1 trillion—just ahead of Japan’s $4.02 trillion. The state now ranks behind only the United States, China, and Germany on the global economic stage.
“California isn’t just keeping pace with the world—we’re setting the pace,” said Newsom. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation. And while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration.”
California’s economy is growing faster than the top three global economies. The state posted a 6% growth rate in 2024, outpacing the U.S. (5.3%), China (2.6%), and Germany (2.9%). Over the past four years, California has averaged a nominal GDP growth of 7.5%. Though preliminary data projects India may overtake California by 2026, the Golden State remains a powerhouse of economic innovation and output.
In addition to being the top U.S. state for new business starts and venture capital investment, California leads the nation in manufacturing, high-tech development, and agriculture. It is home to over 36,000 manufacturing firms that employ more than 1.1 million workers, producing everything from aerospace equipment to zero-emission vehicles.
The state’s economic contributions to the nation are staggering. California sends over $83 billion more to the federal government each year than it receives in return. It is also a magnet for tourism, with record-high visitor spending contributing further to its robust economy.
Despite this success, Governor Newsom is sounding the alarm over federal tariff policies enacted by President Donald Trump. Last week, Newsom filed a lawsuit challenging the president’s use of emergency powers to impose tariffs, calling them economically destructive. The lawsuit argues that the tariffs have destabilized markets, driven up costs, and are projected to shrink the U.S. economy by $100 billion annually.
“Our economic momentum must be protected,” Newsom said. “California powers the nation—and we won’t let reckless federal overreach undermine our future.”
