California’s Economic Boom: Fourth-Largest in the World, and Still Climbing

California officially surpassed Japan to become the world's fourth-largest economy, data released by the International Monetary Fund and the US Bureau of Economic Analysis indicate. The Golden State's nominal GDP rose to $4.1 trillion in 2024, above Japan's $4.02 trillion, behind only the United States, China, and Germany globally.

 

Governor Gavin Newsom celebrated the milestone, saying, "California isn't keeping up with the world-we're leading the way. Our economy is booming because we invest in people, focus on sustainability, and are believers in the potential of innovation." California's economy expanded by a remarkable 6% during the previous year, ahead of the US, China, and Germany, and has registered 7.5% average growth per year since 2021.

 

Driven by its high-tech power industry, solid real estate and finance sectors, and position as America's foremost agricultural and manufacturing center, California now represents around 14% of overall US GDP. The population of the state, currently at nearly 40 million, has also recovered with higher births and foreign immigration.

 

But Newsom cautioned that the state's economic momentum is threatened by President Trump's aggressive tariff strategy, which he contends could hurt critical industries and destabilize growth. California has sued in federal court to challenge these tariffs, highlighting the high stakes for the state's economic future.

 

Source: CNN