In a significant economic milestone, California’s gross domestic product (GDP) has reached $4.10 trillion in 2024, surpassing Japan’s GDP of $4.01 trillion. This accomplishment makes California the 4th largest economy in the world, behind only the United States, China and Germany. The state’s exceptional trade and economic growth highlights the indispensable role the state plays in national and international markets.
Governor Gavin Newsom hailed this accomplishment exuberantly. He cited new data from the International Monetary Fund (IMF) and US Bureau of Economic Analysis, which highlight how California leads the nation’s strong economic recovery. “California isn’t just keeping pace with the world – we’re setting the pace,” he remarked. This indigence designates the state’s desire across the rust of the empire to continue growing a culture of industry and entrepreneurial innovation.
California’s manufacturing and agricultural output are the largest in the U.S., powering its economic engine. Additionally, it stands at the forefront of technological innovation, housing numerous leading companies and startups that drive advancements across various industries. The state is known as the home of the world’s entertainment industry, technology that adds to the California economic powerhouse.
Home to the country’s two biggest seaports–Los Angeles and Long Beach–California is a key battleground in the ongoing national trade war. This strategic advantage has helped propel it to being the fastest growing economy of any of the top 25 economies around the world. Governor Newsom was rightly worried about threats to this progress.
We’re overjoyed to see this success! We understand that short-sighted, destructive tariff policies from today’s federal administration are putting all this hard-earned progress in jeopardy. Newsom stated. His comments are especially salient considering the impact of former President Donald Trump’s tariffs, which have wreaked havoc on global markets and trade. Under Trump, administration officials slapped a 10% tariff on virtually all countries exporting products to the United States. This ruling threw a major wrench into works for businesses that depend on international commerce.
The IMF just cut its Japan growth forecast again. This shift is driven by increased costs from tariffs and major demographic headwinds like a shrinking and aging population. As Japan’s economy faces these pressures, California’s ascent to the fourth largest economy highlights a shift in global economic dynamics.
“California’s economy powers the nation, and it must be protected,” Newsom emphasized, advocating for policies that ensure continued growth and stability in light of external challenges.