California overtakes Japan to claim title of world's fourth-largest economy
California's nominal GDP reached $4.1 trillion in 2024, surpassing Japan to become the world's fourth-largest economy. Governor Newsom warns of the impact of Trump’s tariffs.
California has officially surpassed Japan to become the world’s fourth-largest economy, according to new data released by the U.S. Bureau of Economic Analysis. With a nominal GDP of $4.1 trillion in 2024, California now stands just behind the United States, China, and Germany in terms of global economic power.
Governor Gavin Newsom happily announced the news on April 25, 2025, highlighting just how important was California for the U.S. economy and the innovative forces driving its economy, especially in the tech sector.
Tech, real estate, and finance propel California’s economic growth
California's economy has surpassed all major nations around the world by growing by a 6% in 2024. This big growth was due in big part to Silicon Valley, one of the world’s leading tech hubs, and California’s thriving real estate and finance sectors.
Newsom pointed out that California’s economic strength directly impacts the nation’s overall prosperity. Photo: Hoover Institution
Governor Newsom celebrated California’s success, stating, “California isn’t just keeping pace with the world — we’re setting the pace.”
The threat of tariffs on California’s economy
Newsom also stated that President Donald Trump's tariffs will pose a threat to California's economic status and has publicly spoken about the damage caused by the tariffs to key trading partners, such as: Mexico, China, and Canada.
Governor Newsom filed a lawsuit against Trump on April 16, 2025, challenging his authority to impose sweeping global tariffs under the International Economic Emergency Powers Act. The lawsuit states that Trump’s unilateral tariffs have harmed California's residents, as well as its businesses and industries.