California Overtakes Japan as World’s Fourth Largest Economy

California has officially surpassed Japan to become the world’s fourth-largest economy, with its 2024 nominal GDP reaching $4.10 trillion, just behind the United States, China, and Germany. This achievement is attributed to robust growth in sectors such as technology, agriculture, manufacturing, and entertainment, with the state exhibiting a 6% growth rate—outpacing the top three global economies. Governor Gavin Newsom highlighted California’s commitment to innovation and sustainability as drivers of this success, but also warned that federal tariff policies and trade tensions could threaten future growth. Economic observers note that California’s rise in the rankings is due in part to slower growth in other major economies like Japan and Germany. The state’s economic milestones are further reinforced by its major role in international trade and as a significant contributor to federal revenues. However, experts caution that external factors, such as global economic performance and federal policies, continue to impact California’s economic standing.