California Surpasses Japan, Becomes Fourth-Largest Economy

California has surpassed Japan to become the world's fourth-largest economy, according to newly released data from the International Monetary Fund and the U.S. Bureau of Economic Analysis. The state's nominal GDP reached $4.1 trillion in 2024, outpacing Japan's $4.01 trillion, with only the U.S., China, and Germany ranking higher. California’s economy grew by 6% in 2024 and averaged 7.5% annual growth from 2021 to 2024, exceeding the growth rates of the top three global economies. Governor Gavin Newsom celebrated the state's achievements in technology, manufacturing, and agriculture but warned that federal tariff policies could threaten continued progress. Newsom has taken legal action against the President’s use of emergency powers to impose sweeping tariffs, arguing these measures harm the state’s economy. Despite these challenges, California remains a key driver of the U.S. economy and a global leader in innovation.