California Overtakes Japan to Become World’s 4th-Largest Economy
California has reached a historic milestone, officially surpassing Japan to become the fourth-largest economy in the world. According to data released by the Office of Governor Gavin Newsom, the state’s nominal GDP rose to $4.1 trillion in 2024, edging ahead of Japan’s $4.03 trillion. This achievement places California behind only the United States, China, and Germany—making it the highest-ranked subnational economy on the planet.
Economic analysts from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA) attribute this impressive climb to several key factors. California continues to benefit from strong employment numbers, high productivity, and steady population growth driven by both immigration and birth rates. Together, these elements have reinforced the state’s position as a global economic leader.
Governor Gavin Newsom celebrated the announcement, noting that California is not merely keeping up with worldwide economic progress but actively setting the pace for the future. He highlighted the state’s unmatched diversity, innovation, and creative talent as core reasons behind its success.
California’s economy thrives on a blend of powerful industries, each contributing significantly to its global standing. The technology sector, anchored by Silicon Valley, remains a major driving force with advancements in artificial intelligence, software, and hardware development. Meanwhile, the entertainment industry—centered in Hollywood—continues to influence global culture and media.
The state is also a leader in agriculture, producing a substantial portion of the nation’s fruits, vegetables, and nuts. Additionally, California’s expanding investment in clean energy has positioned it at the forefront of environmental innovation, creating jobs and supporting sustainable growth.
Surpassing Japan marks a symbolic and economic victory for the Golden State, demonstrating its resilience, diversity, and forward-thinking approach. As California continues to evolve, its influence on global markets and trends is expected to grow even stronger.