California Now World’s Fourth Largest Economy

California surpassed Japan as the world’s fourth-largest economy, according to data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA) provided by the governor’s office.

California's gross domestic product (GDP) was $4.1 trillion in 2024, trailing only the United States as a whole at $29.18 trillion, China at $18.74 trillion, and Germany at $4.65 trillion. Japan’s GDP was $4.02 trillion. Among U.S. states, Texas’s GDP was $2.709 trillion and New York’s GDP was $2.297 trillion for 2024.

California’s economy also grew at a 6% in 2024, a higher rate than the world’s three largest economies. The U.S. economy grew 5.3%, China grew 2.6%, and Germany grew 2.9%.

“California isn’t just keeping pace with the world—we’re setting the pace. Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation,” Governor Gavin Newsom said in a statement. “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 powers the nation, and it must be protected.”

Newsom and Attorney General Rob Bonta recently filed a lawsuit arguing that Trump’s tariffs are not authorized under the International Economic Emergency Powers Act (IEEPA). The lawsuit specially cited Trump’s 10% minimum tariffs on most countries, 145% tariffs on imports from China, and 25% tariffs on imports from Canada and Mexico. The lawsuit states that California is directly harmed by the tariffs. “No state is poised to lose more than the state of California,” Newsom said.