California Overtakes Japan to Become World’s Fourth Largest Economy

California’s economy has officially overtaken Japan’s, making it the fourth largest in the world with a nominal GDP of $4.1 trillion, according to new data from the IMF and US Bureau of Economic Analysis.

The state, home to nearly 40 million people, leads the US in tech, entertainment, agriculture, and manufacturing, and posted a 6% growth rate in 2024—outpacing global economic leaders.

Governor Gavin Newsom credited California’s investment in people, innovation, and sustainability, but warned that federal tariff policies under the Trump administration pose a serious risk to the state’s economic progress.