California’s economy has surpassed Japan’s, becoming the fourth-largest global economic force with a GDP of $4.10 trillion, driven by its diverse range of industries including technology, entertainment, and manufacturing.
California’s Economy Surpasses Japan’s as Fourth Largest in the World
California’s gross domestic product (GDP) has surpassed that of ‘the world’s leading economies’ , making it the fourth largest global economic force. According to new data from the ‘International Monetary Fund (IMF)’ and the US Bureau of Economic Analysis, California’s GDP hit $4.10 trillion (£3.08 trillion) in 2024, surpassing Japan’s GDP of $4.01 trillion.
California is the largest state in the US by economy, accounting for over 15% of the country's GDP.
The state is home to Silicon Valley, a global leader in technological innovation, with companies like Apple and Google headquartered there.
California's diverse industries include entertainment, tourism, agriculture, and biotechnology.
According to the Bureau of Economic Analysis, California's GDP grew by 4.2% in 2020, outpacing the national average.
The state's strong economy is driven by its highly educated workforce, favorable business climate, and proximity to international trade routes.
A Growing Economy with Diverse Industries
California’s economy has grown significantly due to its diverse range of industries, including manufacturing, agriculture, and technology. The state is home to leading technological innovation, the centre of the ‘world’s entertainment industry’ , and the country’s two largest seaports. This diversification has contributed to California’s rapid growth, making it an attractive destination for businesses and investors.
Governor Newsom’s Concerns on Tariffs
Gavin Newsom, Governor of California, has expressed concerns about the impact of tariffs imposed by ‘President Donald Trump‘ on California’s economy. The governor has filed a lawsuit challenging Trump’s authority to impose levies, which have caused disruption to global markets and trade. Newsom notes that while California celebrates its economic success, it is threatened by the reckless tariff policies of the current federal administration.
Gavin Newsom is an American politician serving as the 40th Governor of California since 2019.
Born on October 10, 1967, in San Francisco, California, he graduated from Santa Clara University and Harvard Law School.
Newsom served as the Mayor of San Francisco from 2004 to 2011 and Lieutenant Governor of California from 2011 to 2019.
He won the 2018 gubernatorial election with over 61% of the vote, defeating Republican challenger John Cox.
As governor, Newsom has focused on issues like healthcare, education, and climate change.
Global Economic Outlook
The new data also shows that ‘Japan’s economy’ is under pressure due to its decreasing and ageing population, which means its workforce is shrinking and social care costs are ballooning. The IMF has cut its economic growth forecast for Japan and projected that the central bank would raise interest rates more slowly than previously expected because of the impact of higher tariffs.
Japan's economy has undergone significant transformations since its post-WWII reconstruction.
The country experienced rapid growth during the 1960s and 1970s, driven by industrialization and exports.
In the 1980s, Japan became one of the world's leading economies, with a GDP per capita ranking among the highest globally.
However, the economy faced challenges in the 1990s and 2000s, including a prolonged recession and deflation.
Today, Japan continues to adapt, driven by technological innovation and strategic investments in sectors like renewable energy and healthcare.
California’s Economic Leadership
With a GDP of $4.10 trillion, California now trails only Germany, China, and the US as a whole. The state’s economy powers the nation, and it must be protected. Newsom emphasizes that California is not just keeping pace with the world but setting the pace. As the fourth largest global economic force, California will continue to play a significant role in shaping the country’s economic future.
