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California Now Ranks as World’s Fourth Largest Economy
California has officially overtaken 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, Gov. Gavin Newsom said. The state’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion, and placing California behind only the U.S., China and Germany in global rankings.
The California economy is growing faster than the world’s top three economies. In 2024, California’s growth rate of 6% outpaced the U.S. (5.3%), China (2.6%) and Germany (2.9%).
California’s success is long-term: the state’s economy grew strongly over the past four years, with an average nominal GDP growth of 7.5% from 2021 to 2024. However, preliminary data indicate that India is projected to surpass California by 2026.
“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.”
- ◦Economy
