Gov. Gavin Newsom said this week that if California was its own country, its economy would now rank the fourth largest country in the world.
Newsom announced the state’s new economic rankings on Wednesday after recently releasing data from the International Monetary Fund and U.S. Bureau of Economic Analysis, indicating that California’s nominal GDP now surpasses Japan.
According to data, California's nominal GDP reached $4.1 trillion, surpassing Japan's $4.02 trillion. This puts the golden states behind only $29.18 trillion in the United States, $18.74 trillion in China and $4.65 trillion in Germany.
“California is not only in sync with the world – we are keeping 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 also the fastest growing person among the top four economies in the world, according to the data and Newsom office. Its nominal GDP grew 6% in 2024, surpassing the overall interest rate of 5.3% in the United States, 2.6% in China and 2.9% in Germany.
Newsom attributes California's display to a growing population and records tourism spending, coupled with highly concentrated venture capital and new business risks. He also touts the state's strength in agricultural, high-tech and manufacturing centers.
Newsom is also waving on President Trump’s tariff policy as he celebrates the milestone.
“While we celebrate this success, we recognize that our progress is threatened by the current federal government's reckless tariff policies,” he said in a statement. “California's economy provides the country with the impetus of it and it must be protected.”
Last week, Newsom announced a lawsuit challenging Trump's administration to impose international tariffs without congressional support, saying the president's economic policy is a “battery ball” of the U.S. global reputation.
Legal lawsuit argues Trump's bill to impose tariffs on international emergency economic powers does not grant the president unilaterally the ability to tariff goods imported to the United States
Newsom, when announcing the lawsuit, said: “No state can lose more than California.” “That’s why we claim ourselves on behalf of 40 million Americans.”
The last time California improved its world economic rating was in 2018, when its nominal GDP surpassed the UK to enter fifth place. According to current data trends, India's economy is expected to be $3.90 trillion, and is expected to surpass California in 2026.
Times worker Taryn Luna contributed to the report.
