California Overtakes Japan To Become World’s Fourth-Largest Economy

California has surpassed Japan to become the world’s fourth-largest economy, Governor Gavin Newsom announced, warning that President Trump’s tariff policies pose a risk to the state's economic strength, Lex Harvey reported for CNN.

Only the United States, China, and Germany now have larger economies than California.

California’s nominal gross domestic product (GDP) reached $4.1 trillion in 2024, according to preliminary data from the U.S. Bureau of Economic Analysis, edging past Japan’s $4.02 trillion GDP recorded by the International Monetary Fund.

Only the United States, China, and Germany now have larger economies.

“California isn’t just keeping pace with the world — we’re setting the pace,” Newsom said, crediting the state's investments in people, sustainability, and innovation for its 6% growth rate last year.

However, Newsom warned that California’s economic success could be undermined by "the reckless tariff policies of the current federal administration," emphasizing that the state’s output — which accounts for 14% of U.S. GDP — is critical to national prosperity.