California’s Economy Surpasses Japan as World’s 4th Largest

LOS ANGELES, CA – APRIL 19: Shipping containers at the Port of Los Angeles. Photographed on Saturday, April 19, 2025. (Myung J. Chun / Los Angeles Times)

California’s economy has overtaken that of the country of Japan, making the US state the fourth largest global economic force.

This is according to new data from the International Monetary Fund, IMF, and the US Bureau of Economic Analysis.

The data shows that California’s gross domestic product, GDP, hit US$4.10 trillion in 2024. Japan’s was registered at US$4.01 trillion.

The state now only trails Germany, China and the US as a whole.

California has the largest share of manufacturing and agricultural production in the US. It is also home to leading technological innovation, the centre of the world’s entertainment industry and the country’s two largest seaports.

Governor Gavin Newsom says the state isn’t merely keeping pace with the world; it is setting the pace.

Newsom has spoken out against President Donald Trump’s sweeping tariffs and voiced concern about the future of the state’s economy. He has filed a lawsuit challenging Trump’s authority to impose the levies, which have caused disruption to global markets and trade.

Newsom is a prominent Democrat and potential presidential candidate for 2028.