News Summary
In a significant economic milestone, California has overtaken Japan to become the fourth-largest economy globally, with a nominal GDP of $4.1 trillion in 2024. Governor Gavin Newsom announced that California’s economy has demonstrated remarkable growth, fueled by innovation, tourism, and a strong labor market. Despite challenges such as ongoing trade wars and stark income inequalities, the state continues to thrive and attract talent, solidifying its position on the global economic stage.
California’s Economic Boom: Now the Fourth-Largest in the World!
In a remarkable turn of events, California has claimed the title of the fourth-largest economy in the world, knocking Japan down a notch. Governor Gavin Newsom proudly announced this milestone, backed by data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis. California’s nominal gross domestic product (GDP) hit a whopping $4.1 trillion in 2024, trumping Japan’s $4.02 trillion.
A Peek at the Numbers
When we look at the rankings of global economies, California now sits behind only the United States at a staggering $29.18 trillion, China with $18.74 trillion, and Germany, which boasts $4.65 trillion. It seems California’s knack for innovation and adaptation is paying off big time.
In 2024, California’s GDP grew at a rate of 6%—the fastest among the top economies. For context, that’s a little higher than the overall U.S. GDP growth of 5.3%, while China and Germany lagged behind at 2.6% and 2.9%, respectively. Wow, talk about being a trendsetter!
Slaying Trade War Woes
Despite facing challenges from ongoing trade wars—especially with China and other important trading partners—California has shown impressive resilience. The state’s economy accounted for about 14% of the national GDP in 2024. Remarkably, California’s population grew by nearly 250,000 in the same year, bolstering economic expansion with fresh talent and demand.
Governor Newsom attributes this booming economy to several key factors, such as a strong tourist trade, cash-flush venture capital, and a breeding ground for innovative business ideas. With essential sectors like technology, agriculture, tourism, and entertainment driving growth, it’s clear that California is making serious waves on the global economy stage.
The Labor Market Growth
Another positive sign is the robust growth in California’s labor market. Between 1998 and the second quarter of 2024, jobs grew by approximately 30%. Major contributors to this growth include real estate, finance, and professional services, particularly in the thriving tech sector. This is a huge deal for the state, indicating that jobs are being created and lives are being improved.
Challenges Still Looming
Balancing the Scales
Job Market Status
Deeper Dive: News & Info About This Topic
- CNN: California’s Economic Boom
- Wikipedia: Economy of California
- BBC: California Overtakes Japan
- Google Search: California Economy
- Fox Business: World’s 4th Largest Economy
- Encyclopedia Britannica: Economy
- USA Today: California GDP Rankings
- Google News: California Economic Growth
- The Guardian: Gavin Newsom on California’s Economy
- Google Scholar: California Economy
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.
