Mathias Busekist
It’s official.
California has officially surpassed Japan to become the world’s fourth-largest economy, Governor Gavin Newsom announced, touting the state’s economic strength while sounding the alarm over what he described as damaging federal trade policies under President Donald Trump.
According to preliminary data from the U.S. Bureau of Economic Analysis, California’s nominal gross domestic product (GDP) hit $4.1 trillion in 2024, edging out Japan’s $4.02 trillion, as reported by the International Monetary Fund.
That places California behind only the United States, China, and Germany in global economic rankings.
“California isn’t just keeping pace with the world — we’re setting the pace,” Newsom declared in a statement Wednesday. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”
Driven largely by its powerful tech sector in Silicon Valley, alongside robust real estate and finance industries, California accounted for 14% of the U.S. GDP last year. The state recorded 6% growth in 2024 — outpacing all three larger economies.
However, Newsom warned that California’s economic momentum is under threat from what he called “the reckless tariff policies of the current federal administration.”
“California’s economy powers the nation, and it must be protected,” he said, pointing specifically to sweeping tariffs enacted by President Trump using emergency powers.
California, home to nearly 40 million people, engaged in roughly $675 billion in two-way trade in 2024. Mexico, Canada, and China — the primary targets of Trump’s tariffs — are its top three trade partners, accounting for over $200 billion of California’s $491 billion in total imports last year.