**California Becomes World’s Fourth-Largest Economy, Surpassing Japan**
California has officially 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. Governor Gavin Newsom announced that California’s nominal Gross Domestic Product (GDP) has reached $4.1 trillion, overtaking Japan’s $4.02 trillion. This positions California behind only the United States, China, and Germany in the global economic rankings.
The state is not only climbing the ranks but also growing faster than the world’s top three economies. In 2024, California recorded a robust 6% growth rate, outpacing the United States (5.3%), China (2.6%), and Germany (2.9%).
The state’s economic trajectory has been solid over the past four years, with an average nominal GDP growth rate of 7.5% between 2021 and 2024. However, preliminary forecasts suggest that India may overtake California by 2026 due to its rapid economic acceleration.
“California isn’t just keeping pace with the world—we’re setting the pace,” said Governor Newsom. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”
California’s economic ascent reflects its dynamic mix of technology, entertainment, agriculture, and renewable energy sectors, solidifying its role as a global economic powerhouse.
