California becomes world’s fourth-largest economy

Sacramento

California’s economy has now overtaken Japan to become the world’s fourth-largest, behind the United States, China, and Germany. Governor Gavin Newsom announced that California’s GDP reached $4.1 trillion in 2024, surpassing Japan’s $4.02 trillion.

Newsom attributed the state’s success to investing in people, sustainability, and innovation. California’s economy has grown significantly, with a 7.5% average GDP growth from 2021 to 2024 and 6% growth in 2024 alone. The state is a leader in new businesses, manufacturing, high-tech industries, and agriculture.

California is also the top contributor to the US economy, sending over $83 billion more to the federal government than it receives. Despite this achievement, Newsom raised concerns about federal trade policies, especially after California filed a lawsuit against the federal government on April 16 over tariffs imposed by President Trump.

The lawsuit argues that these tariffs are harmful to California’s economy, causing losses and higher costs for businesses and consumers. Research suggests that California could face over $170 billion in import taxes by 2025 under the new tariff system. Governor Newsom expressed the state’s commitment to protecting its economic progress from policies that may undermine its growth.