California, October 15, 2025
News Summary
California’s GDP has reached an impressive $4.1 trillion, surpassing Japan’s $4.02 trillion and solidifying its position as the world’s fourth-largest economy. With a growth rate of 6% in 2024, California outperformed both the U.S. and global counterparts. Factors contributing to this success include innovation and investment in human capital. Despite historical economic strength, the state still faces challenges such as high living costs and homelessness. Governor Gavin Newsom highlighted this achievement in the context of a growing workforce and considerable contributions to federal taxes.
California Surpasses Japan to Become World’s Fourth-Largest Economy
California’s nominal gross domestic product (GDP) reached $4.1 trillion at the end of 2024, surpassing Japan’s nominal GDP of $4.02 trillion. This significant milestone positions California as the world’s fourth-largest economy, ranking only behind the United States, China, and Germany. The U.S. leads with a staggering GDP of $29.18 trillion, followed by China at $18.74 trillion, and Germany at $4.65 trillion.
A notable aspect of California’s economic performance is its remarkable growth rate of 6% in 2024. This figure outstrips the growth rates of the U.S. at 5.3%, China at 2.6%, and Germany at 2.9%. This thriving economy is attributed to various factors, including substantial investments in human capital, an emphasis on sustainability, and a dedication to innovation.
Governor Gavin Newsom highlighted this achievement and noted that California is not just keeping pace with global economies but is also leading the charge. The state’s population has been steadily growing, primarily fueled by both immigration and natural birth rates, despite facing challenges like an ongoing affordable housing crisis.
California stands out as a leader in the technology sector, where 20% of its workforce is employed. Additionally, the state remains the largest agricultural producer in the United States, exporting approximately $24.3 billion worth of commodities in 2023. It is noteworthy that California contributes $83 billion annually more in federal taxes than it receives in federal support, underscoring its financial significance to the nation.
The Newsom administration has taken proactive measures to protect California’s economic interests. A notable effort was the filing of a lawsuit against the Trump administration regarding tariff policies that could jeopardize the state’s economy. This lawsuit emphasizes the necessity of safeguarding California’s economic power, which is deemed vital for national stability.
In terms of global rankings, California’s previous position was fifth, achieved in 2017, but it ascended to fourth in 2023 after reclaiming this position in early 2025. Economic experts suggest that the state’s rise might also be influenced by fluctuations in currency exchange rates, particularly the weakening of the Japanese yen against the dollar.
The International Monetary Fund (IMF) has recently issued a guarded outlook for global economic growth, indicating potential risks such as prolonged uncertainty, protectionism, and financial market corrections. Despite the positive indicators in California’s economy, the state still contends with significant challenges, including high living costs and a substantial homelessness crisis.
Key Economic Indicators for California
- Nominal GDP: $4.1 trillion
- Growth Rate (2024): 6%
- Population Growth Drivers: Immigration and natural birth rates
- Technology Workforce: 20%
- Agricultural Exports (2023): $24.3 billion
- Federal Tax Contribution: $83 billion more than received
- Previous Global Ranking: Fifth (2017)
- Current Global Ranking: Fourth (Jan 2025)
FAQ
What is California’s nominal GDP?
California’s nominal gross domestic product (GDP) reached $4.1 trillion at the end of 2024, surpassing Japan’s nominal GDP of $4.02 trillion.
What is California’s economic growth rate for 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 challenges California faces despite its strong economy?
Despite improving economic indicators, the state faces ongoing challenges including high living costs and a substantial homelessness crisis.
Deeper Dive: News & Info About This Topic
- The Guardian: California Economy Surpasses Japan
- Wikipedia: Economy of California
- Business Insider: California Becomes Fourth-Largest Economy
- Encyclopedia Britannica: Economy
- Los Angeles Times: California’s Economy Ranking
- Google News: California Economy 2025
Author: Anaheim Staff Writer
The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange 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 major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
