California surpasses Japan to become the world's 4th largest economy
California has officially surpassed Japan to become the world's 4th largest economy, according to newly released GDP data. The news follows a recent rise in the state's per capita income.
California has moved past Japan to become the world's fourth-largest economy, according to newly released international rankings.
The announcement, made by Governor Gavin Newsom on April 23, follows recent data showing that the state's per capita personal income has climbed above $85,000. Figures from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA) place California’s nominal GDP at approximately $4.1 trillion for 2024, compared to Japan’s $4.02 trillion. Only the United States, China, and Germany currently report larger economies.
“California isn’t just keeping pace with the world—we’re setting the pace. Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation. And, while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration. California’s economy powers the nation, and it must be protected.”
-Governor Gavin Newsom
This update follows recently published data showing that California’s per capita income has risen above $85,000, ranking among the highest in the US. Together, the data points highlight changes in the state’s overall economic output and individual earnings, particularly across major sectors like technology, agriculture, manufacturing, and tourism.
Pat Sharyon
Read more: California’s Per Capita Income Tops $85K, Landing in Second-Highest National Tier.
Recent Economic Performance
California’s GDP growth rate in 2024 was approximately 6%, exceeding the overall U.S. growth rate of 5.3% for the year. Growth rates for other major economies, including China (2.6%) and Germany (2.9%), were lower during the same period.
In addition, data from the Governor's Office notes that California remains a net contributor to the federal budget, with an estimated $83 billion more paid in federal taxes than received in federal funding.
Context and Considerations
While GDP and income growth are often cited as measures of economic strength, analysts continue to note challenges for California, including high living costs, regional disparities, and ongoing debates about economic sustainability.
The state's position as the fourth-largest economy highlights its global economic role, but broader questions about affordability, access, and distribution of growth remain active areas of discussion among policymakers and researchers.
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Pat Sharyon
Pat Sharyon
