California has surpassed Japan to become the world’s fourth-largest economy, with its nominal gross domestic product (GDP) reaching $4.1 trillion in 2024, according to preliminary data from the U.S. Bureau of Economic Analysis. This marks a slight lead over Japan’s $4.02 trillion GDP for the same period, as recorded by the International Monetary Fund.
Now, only the United States, China, and Germany have larger economies than California. The state outpaced all three nations with a 6% growth in 2024, according to the data.
“California isn’t just keeping pace with the world, we’re setting the pace,” Governor Gavin Newsom said in a press release on Wednesday. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”
However, Newsom also warned that the state’s economic strength is being threatened by “the reckless tariff policies of the current federal administration.”
“California’s economy powers the nation, and it must be protected,” he added.
With a population of around 40 million, California remains the most populous state in the U.S. and accounted for 14% of the nation’s GDP in 2024. The state’s economic power is driven by industries such as Silicon Valley, real estate, and finance.
In addition, Newsom recently filed a lawsuit against former President Trump over his use of emergency powers to impose sweeping global tariffs, which the governor claims have harmed California businesses and families.
The lawsuit, filed in federal court on April 16, argues that Trump’s tariffs on Mexico, China, and Canada, as well as a 10% tariff on imports from other countries, were unlawful. Newsom claims these tariffs have disrupted supply chains, inflated costs, and caused billions of dollars in damages to the state. The lawsuit contends that Trump’s invocation of the International Economic Emergency Powers Act to implement these tariffs was “unlawful and unprecedented,” and that such sweeping actions require congressional approval.
