Raphael Johnson
California’s economy has overtaken that of the country of Japan, making the US state the fourth largest global economic force. This comes a s a huge surprise as California is only a state in the US. The implication of this is that even as a state, California is richer than most countries of the world.Governor Gavin Newsom touted new data from the International Monetary Fund (IMF) and the US Bureau of Economic Analysis showing California’s growth.
The data shows California’s gross domestic product (GDP) hit $4.10 trillion (£3.08 trillion) in 2024, surpassing Japan, which was marked at $4.01 trillion. The state now only trails Germany, China and the US as a whole.
“California isn’t just keeping pace with the world – we’re setting the pace,” Newsom said.The new figures come as Newsom has spoken out against President Donald Trump’s tariffs and voiced concern about the future of the state’s economy.California has the largest share of manufacturing and agricultural production in the US. It is also home to leading technological innovation, the center of the world’s entertainment industry and the country’s two largest seaports.
Newsom, a prominent Democrat and possible presidential candidate in 2028, filed a lawsuit challenging Trump’s authority to impose the levies, which have caused disruption to global markets and trade.Trump has enacted 10% levies on almost all countries importing to the US, after announcing a 90-day pause on higher tariffs.
Another 25% tariff was imposed on Mexico and Canada. The levies on China, however, have led to an all-out trade war with the world’s second largest economy.Trump imposed import taxes of up to 145% on Chinese goods coming into the US and China hit back with a 125% tax on American products.His administration said last week that when the new tariffs were added on to existing ones, the levies on some Chinese goods could reach 245%.
The new data shows California’s GDP behind the US at $29.18 trillion, China at $18.74 trillion and Germany at $4.65 trillion. It also shows California was the fastest growing among those countries.
Japan’s economy is under pressure because of its decreasing and ageing population, which means its workforce is shrinking and social care costs are ballooning.
