California, October 15, 2025
News Summary
California has surpassed Japan to become the fourth-largest economy globally, with a nominal GDP of $4.1 trillion by the end of 2024. The state’s impressive 6% growth rate outpaced other major economies and reflects California’s significant investments in innovation and human capital. Governor Gavin Newsom emphasized the importance of this milestone, alongside the challenges of high living costs and homelessness. Despite these obstacles, California’s economic ascent underscores its vital role in the global market.
California has officially surpassed Japan to become the world’s fourth-largest economy, with a nominal gross domestic product (GDP) of $4.1 trillion as of the end of 2024. This milestone positions California behind only the United States, China, and Germany, which have nominal GDPs of $29.18 trillion, $18.74 trillion, and $4.65 trillion, respectively.
The impressive growth rate of California’s economy in 2024 was recorded at 6%, outpacing the growth rates of the United States (5.3%), China (2.6%), and Germany (2.9%). The announcement regarding California’s new economic ranking was made by Governor Gavin Newsom, who highlighted the state’s significant contributions to the global economy and the effectiveness of its policies to stimulate growth.
Several key factors underpin California’s remarkable economic performance. Notable investments in human capital, a commitment to sustainability, and a thriving culture of innovation have all played vital roles. The population of California has also seen growth driven primarily by both immigration and natural birth rates, despite ongoing issues related to an affordable housing crisis.
California continues to be a dominant force in the technology sector, employing approximately 20% of its workforce in this industry. It also stands as the largest agricultural producer in the United States, with the state exporting about $24.3 billion worth of agricultural products in 2023. Moreover, California contributes $83 billion annually more in federal taxes than it receives in federal support, highlighting its critical financial role within the nation.
In terms of legal actions to protect its economic interests, Newsom’s administration has filed a lawsuit against the Trump administration, contesting tariff policies that could hinder California’s economic advantages. This lawsuit emphasizes the necessity of safeguarding California’s economic power, which is considered essential for the nation’s overall economic health.
California’s ascent to the fourth position is particularly notable considering its previous ranking as fifth, a status it achieved in 2017. The state reclaimed this spot in early 2025 after a brief period of economic observation. Economic experts also suggest that fluctuations in currency exchange rates, particularly the depreciation of the Japanese yen against the dollar, may have influenced California’s rise in global economic standings.
Despite these successes, the International Monetary Fund (IMF) has issued a cautious outlook regarding global economic growth, citing potential risks, including prolonged uncertainty, rising protectionism, and anticipated corrections in financial markets. Additionally, while California boasts improving economic indicators, it grapples with persistent challenges, notably its high cost of living and a significant homelessness crisis affecting many residents.
In summary, California’s achievement in surpassing Japan as the fourth-largest economy in the world marks a significant milestone. The state’s strong economic performance, fueled by innovation, population growth, and substantial contributions to federal taxes, has positioned it as a pivotal player on the global stage.
FAQ
What is California’s nominal gross domestic product (GDP) as of the end of 2024?
California’s nominal gross domestic product (GDP) reached $4.1 trillion at the end of 2024.
Which country does California surpass to become the fourth-largest economy?
California surpasses Japan, which has a nominal GDP of $4.02 trillion.
What are the other countries that rank higher than California in terms of economic size?
California ranks behind only the United States ($29.18 trillion), China ($18.74 trillion), and Germany ($4.65 trillion).
What was California’s growth rate in 2024?
California experienced a growth rate of 6% in 2024, outperforming the U.S. (5.3%), China (2.6%), and Germany (2.9%).
What are some factors contributing to California’s economic performance?
Factors include significant investments in people, a focus on sustainability, and innovation.
How does California’s workforce relate to the technology sector?
California is a leader in the technology sector, employing 20% of its workforce in that industry.
What is California’s contribution to federal taxes?
California contributes $83 billion per year more in federal taxes than it receives in federal support.
What challenges does California face despite its economic success?
California faces ongoing challenges, including high living costs and a substantial homelessness crisis.
Key Economic Features of California
| Feature | Details |
|---|---|
| Nominal GDP | $4.1 trillion (2024) |
| Global Ranking | 4th, surpassing Japan |
| Annual Growth Rate | 6% (2024) |
| Population Growth Factors | Immigration and natural births |
| Technology Sector Employment | 20% of workforce |
| Agricultural Exports | $24.3 billion (2023) |
| Federal Tax Contribution | $83 billion more paid than received |
Deeper Dive: News & Info About This Topic
- Los Angeles Times
- Wikipedia: Economy of California
- Business Insider
- Google Search: California economy 2025
- The Guardian
- Encyclopedia Britannica: Economy
- USA Today
- Google News: California 4th largest economy
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
