California, October 15, 2025

News Summary

California’s nominal GDP reaches $4.1 trillion, surpassing Japan’s $4.02 trillion, allowing it to rank fourth globally. Governor Newsom highlights economic growth, which saw a 6% increase in 2024, driven by innovation and investment. Despite challenges like high living costs, California remains a global leader in technology and agriculture, contributing significantly to federal taxes.

California

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 economic achievement allows California to now rank fourth globally in terms of economic size, trailing only behind the United States, China, and Germany. The state’s significant economic growth reflects a robust expansion rate of 6% in 2024, significantly outperforming the growth rates of the U.S. (5.3%), China (2.6%), and Germany (2.9%).

Governor Gavin Newsom announced these new rankings, emphasizing California’s role not just as a participant in the global economy, but as a leader setting benchmarks for others to follow. Several factors contribute to this impressive performance, including substantial investments in human capital, a commitment to sustainability, and a strong focus on innovation.

Economic Overview

Despite facing challenges such as an affordable housing crisis and high living costs, California has experienced population growth primarily supported by immigration and natural birth rates. The state remains a global leader in the technology sector, employing approximately 20% of its workforce in this dynamic industry. Moreover, California continues to dominate the agricultural sector as the largest producer in the U.S., with exports valued at around $24.3 billion in 2023.

Another significant detail regarding California’s economy is that the state contributes $83 billion per year more in federal taxes than it receives in federal support, underscoring its economic strength and importance to the national economy. In response to economic challenges, Governor Newsom’s administration has been proactive by filing a lawsuit against the Trump administration concerning tariff policies that may jeopardize California’s economic interests, reinforcing that the state’s economic power is essential for the nation.

Global Economic Rankings

Prior to this achievement, California ranked fifth globally, a position it held since 2017 until it ascended to fourth place in 2023. The state’s ranking reflects not only its economic performance but also external factors such as fluctuations in currency exchange rates, particularly the depreciation of the Japanese yen against the dollar, which has influenced comparative GDP calculations.

While economic indicators in California are improving, the International Monetary Fund (IMF) has issued a cautious outlook on global economic growth, cautioning against potential risks such as prolonged uncertainty, protectionism, and market corrections. As a result, California must navigate these external challenges while addressing internal issues like homelessness and high living costs.

Conclusion

California’s newly established status as the world’s fourth-largest economy is a testament to its resilient economic framework, aggressive investment strategies, and innovative approaches across various sectors. Holding this position demands continuous adaptation to both local and international economic dynamics, ensuring that California remains a crucial player on the global stage.

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Deeper Dive: News & Info About This Topic

• Los Angeles Times: California’s Economy
• Wikipedia: California
• The Guardian: California Economy
• Google Search: California Economy
• Visual Capitalist: World’s Largest Economies
• Encyclopedia Britannica: Economy
• Business Insider: California Economy Rankings
• Google News: Largest Economies
• USA Today: California GDP

Author: STAFF HERE COSTA MESA WRITER

The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, 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 the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.