California, October 15, 2025
News Summary
California has achieved a significant milestone by surpassing Japan’s nominal GDP, now standing at $4.1 trillion. This growth reflects a 6% increase over the past year, outpacing the national growth rate. Factors contributing to this achievement include investments in innovation, a focus on sustainability, and a skilled workforce. While California takes pride in its economic growth, it continues to face challenges such as high living costs and homelessness. The state now ranks fourth in the global economy, trailing only the U.S., China, and Germany.
California Surpasses Japan to Become World’s Fourth-Largest Economy
California has reached a new economic milestone, with its nominal gross domestic product (GDP) hitting $4.1 trillion at the end of 2024, surpassing Japan’s nominal GDP of $4.02 trillion. The state now ranks fourth globally in terms of economic size, trailing only the United States, China, and Germany.
Governor Gavin Newsom announced the new rankings, emphasizing the state’s robust economic performance. Over the past year, California’s economy grew at an impressive rate of 6%, outpacing the national growth rate of 5.3%, China’s 2.6%, and Germany’s 2.9%. This signifies California’s rising influence on the global economic stage.
Key factors contributing to California’s strong economic performance include significant investments in its people, a commitment to sustainability, and a vibrant atmosphere for innovation. Moreover, the state’s population has seen growth, primarily driven by immigration and natural birth rates, despite grappling with an ongoing affordable housing crisis.
California continues to be a formidable leader in the technology sector, employing 20% of its workforce in this industry. It is also recognized as the largest agricultural producer in the nation, exporting approximately $24.3 billion worth of agricultural commodities in 2023. In terms of federal taxes, California contributes $83 billion more annually than it receives in federal support, underscoring its economic importance.
In defense of its economic interests, the Newsom administration previously filed a lawsuit against the Trump administration regarding tariffs believed to jeopardize California’s economic stability. This lawsuit highlights the significance of California’s economic power both within the state and for the nation as a whole.
California previously held the fifth spot in global economic rankings, a position it achieved in 2017. The state advanced to fourth place in 2023 and has managed to maintain this position into early 2025. Economic experts suggest that California’s ascent may be influenced by fluctuating currency exchange rates, particularly the weakening of the Japanese yen against the dollar.
The International Monetary Fund (IMF) has issued a guarded outlook for global economic growth, pointing out potential risks like prolonged uncertainty, protectionism, and financial market corrections. Even with these financial improvements, California still faces serious challenges, including high living costs and a substantial homelessness crisis, which continue to affect the quality of life for many residents.
Economic Growth Overview
As California celebrates this impressive economic growth, it is essential to recognize both its achievements and ongoing challenges. California’s economy not only plays a critical role at the national level but also sets an example on the global stage. With continued focus on innovation and sustainable practices, California aims to solidify its position as a leader in the 21st-century economy.
FAQ
What is California’s nominal GDP as of the end of 2024?
How does California’s economic growth rate compare to other countries?
What factors contributed to California’s economic performance?
What are the ongoing challenges California faces despite its economic growth?
| Economic Indicator | California | U.S. | China | Germany |
|---|---|---|---|---|
| Nominal GDP (2024) | $4.1 trillion | $29.18 trillion | $18.74 trillion | $4.65 trillion |
| Growth Rate (2024) | 6% | 5.3% | 2.6% | 2.9% |
| Major Industry Employment | 20% in Technology | N/A | N/A | N/A |
| Agricultural Exports (2023) | $24.3 billion | N/A | N/A | N/A |
| Federal Tax Contribution | $83 billion more than received | N/A | N/A | N/A |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: California’s Economy Surpasses Japan
- Wikipedia: Economy of California
- Business Insider: California Economy Ranks Fourth
- Google Search: California Economic Growth
- The Guardian: California Surpasses Japan’s Economy
- Encyclopedia Britannica: California
- Visual Capitalist: World’s Largest Economies
- USA Today: California GDP Rankings
- Google Search: California GDP
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego 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 Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
