“California surpasses Japan as world’s fourth-biggest economy.”

California Overtakes Japan as World’s 4th Largest Economy

Key Highlights:

• Economic Milestone: California’s GDP reached **$4.1trillion\ast \ast in2024,surpassingJapan($4.02T) and trailing only the U.S., China, and Germany. (Sources: IMF, U.S. BEA)

• Growth Leadership:

  • 2024 growth rate: 6% (vs. U.S. 5.3%, China 2.6%, Germany 2.9%).

  • 7.5% average GDP growth over the past four years.

• Driving Forces:

  • Dominance in manufacturing (1.1M jobs), tech, agriculture, and tourism.

  • Leads U.S. in venture capital, business startups, and zero-emission vehicle production.

  • Contributes $83B more to federal coffers than it receives.

• Policy & Challenges:

  • Gov. Newsom credits sustainability, innovation, and workforce investments.

  • Warns against federal tariff policies, filing a lawsuit over $100B annual economic damage estimates.

California’s rise reflects its role as a global economic engine, but trade tensions and reliance on federal stability pose risks. The state’s success underscores the impact of progressive policies—and the fragility of growth amid political headwinds.