CNN
—
California has surpassed Japan to become the world’s fourth-largest economy, Gov. Gavin Newsom said, as he warned of the threat posed by President Donald Trump’s tariffs to the tech powerhouse’s fast-growing wealth.
The Golden State’s nominal gross domestic product (GDP) reached $4.1 trillion in 2024, according to preliminary data from the US Bureau of Economic Analysis, edging past Japan’s $4.02 trillion nominal GDP in the same period as recorded by the International Monetary Fund.
That means only the United States, China and Germany have larger economies than California, which outpaced all three countries with growth of 6% last year, according to the release.
“California isn’t just keeping pace with the world — we’re setting the pace,” Newsom said in a news release Wednesday. “Our economy is thriving because we invest in people, prioritize sustainability and believe in the power of innovation.”
But Newsom also warned that the state’s economic prowess is being threatened by “the reckless tariff policies of the current federal administration.”
“California’s economy powers the nation, and it must be protected,” he said.
California, America’s most populous state with some 40 million people, accounted for 14% of the nation’s GDP in 2024, according to government data, driven by Silicon Valley and its real estate and finance sectors.
Last week, Newsom sued Trump over his use of emergency powers to unilaterally enact sweeping global tariffs, which the governor said had hurt Californian families and businesses.
The lawsuit, filed in federal court on April 16, argues that Trump lacks the authority to enact tariffs against Mexico, China and Ca
9 Comments
suraci
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ksajadi
I wish we had the same outsized influence over the US federal policy as well.
up2isomorphism
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udev4096
And Japan is still the most peaceful place to live!
pavlov
California’s GDP is now twice as large as Russia’s.
Yet the President of the United States seems to spend a lot of time trying to make Russians happy, and zero time making Californians happy.
ninetyninenine
The title almost implies that CA had some unnatural acceleration to put it past japan. I think it's more that japan has been declining.
This won't last once the US population starts declining. We've been held afloat by immigration but even that's running out.
Japan was ahead of the curve in terms of modernity. Looking at them is almost like looking at our own future.
aaron695
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captainmuon
It's funny that the list includes both California and the US.
It would be interesting to compare economies of the same scale, regardless of legal status: If you are considering the US and China, maybe you should include the whole of the EU. And if you are looking at Germany, Japan, … It makes sense to not only include California, but also to split up other countries. I'm curious how high up Guandong or Shanghai would be for example.
The fact that the US and China show up as single countries (and not "continents"/regions) whereas the EU shows up as a bunch of "small" countries is source of a lot of inferiority complex in Europe.
maxglute
Or how JP "plummeted" from 6 trillion economy to 4 trillion because their FX went from 100:1 USD to 160:1 (at peak last year) now 140:1. Still eaking slow growth in yen terms.
JP can still be 1/3 larger than california US compels them to appreciate. I think 140 is probably a good balance for JP exports (high tech) and imports (energy, commodities/inputs).
Or Trump makes USD weaker.