If California is its own country, its economy now ranks as the fourth largest country in every country in the world, Gov. Gavin Newsom said this week.
Newsom released the state’s new economic rankings on Wednesday after recently released data from the International Monetary Fund and the U.S. Bureau of Economic Analysis showed that California’s nominal gross domestic product exceeds Japan.
Data shows that California’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion. This brings the Golden State to $29.18 trillion, China to $18.74 trillion and Germany to $4.65 trillion.
“California isn’t just in line with the world. We’re setting the pace,” Newsom said in a statement. “Our economy is thriving because we invest in people, prioritize sustainability and believe in the power of innovation.”
California is the fastest growing of California’s top four global economy, according to Data and Newsom’s Office. Its nominal GDP grew at a rate of 6% in 2024, surpassing the overall US rate of 5.3%, China’s 2.6% and Germany’s 2.9% rate.
Newsom is attributed to California’s growing population and record-breaking tourism, as it relates to high concentrations of venture capital and new business ventures. He also promoted the strength of the state’s agriculture, high-tech and manufacturing centers.
While celebrating the milestone, Newsom also shook President Trump’s tariff policy.
“While celebrating this success, we recognize that progress is threatened by the current federal government’s reckless tariff policies,” he said in a statement. “The California economy must empower and protect the nation.”
Last week, the newspaper issued a lawsuit opposed Trump’s enforcement agency calling the president’s economic policy a “ball of destruction” against America’s global reputation and enacting international tariffs without Congressional support.
The legal action argues that the International Emergency Economic Power Act, which Trump cites to impose tariffs, does not give the president the ability to unilaterally adopt tariffs on goods imported into the United States.
“No state loses anything better than California,” the news comes when it announced the lawsuit. “That’s why we assert ourselves on behalf of 40 million Americans.”
California made progress in the global economic assessment in 2018, but its nominal GDP surpassed the UK to rank fifth. According to current data trends, the Indian economy, currently at $3.90 trillion, is projected to overtake California in 2026.
Times staff writer Taryn Luna contributed to this report.
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