California’s Economy Outpaces Japan, Secures Fourth-Place Ranking Worldwide
(MENAFN) California has overtaken Japan, securing its position as the world’s fourth-largest economy, according to an announcement from Governor Gavin Newsom’s office.
In 2024, the state’s nominal GDP reached $4.1 trillion, surpassing Japan’s $4.02 trillion, based on data from the International Monetary Fund (IMF) and the US Bureau of Economic Analysis (BEA). California now ranks behind only the United States ($29.18 trillion), China ($18.74 trillion), and Germany ($4.65 trillion).
“California isn’t just keeping pace with the world – we’re setting the pace,” Newsom said in a statement on Wednesday. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”
The state also led global economic growth, expanding by 6% in 2024, surpassing the US average of 5.3%, China’s 2.6%, and Germany’s 2.9%. Over the last four years, California’s economy has grown at an average annual rate of 7.5%.
Experts attribute the state’s success to the robust growth of its technology, entertainment, and clean energy industries. California, home to nearly 40 million residents, is also a key player in manufacturing, agriculture, and tourism.
In contrast, Japan’s economy has struggled. Despite a slight GDP increase last quarter, the IMF downgraded its 2025 growth forecast to 0.6%, down from 1.1%. Economists point to Japan’s shrinking workforce, stagnant productivity, and rising commodity prices as key factors hindering its economic progress.
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