 "California surpasses Japan to become the world's fourth-largest economy")
In a major turn of events, California’s economy has surpassed that of Japan, making the state the fourth-largest economy in the world. California Governor Gavin Newsom confirmed the news on Thursday. According to the data shared by the International Monetary Fund, the state’s nominal GDP reached $4.1 trillion, edging out Japan’s $4.02 trillion nominal GDP.
The Golden State now ranks behind the US at $29.18tn trillion, China at $18.74 trillion, and Germany at $4.65 trillion. The state has a population of nearly 40 million people and is touted as the centre for US manufacturing output. Not only this, the state on the West Coast is also America’s largest agricultural producer.
“California isn’t just keeping pace with the world – we’re setting the pace. Our economy is thriving because we invest in people, prioritise sustainability, and believe in the power of innovation,” Newsom said in the Thursday statement.
California’s success story
According to the IMF data, the state has outperformed the world’s top economies in terms of the growth rate in the year 2024. The Californian economy grew 6 per cent compared with the US’s 5.3 per cent, China’s 2.6 per cent and Germany’s 2.9 per cent.
Interestingly, the new rankings came six years after California surpassed the United Kingdom and became the world’s fifth-largest economy. In his statement, the California governor also took potshots at US President Donald Trump’s agenda.
“And, while we celebrate this success, we recognise 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,” Newsom said in the statement. Last week, California became the first state to sue the federal government over Trump tariffs.
“No state is poised to lose more than the state of California,” Newsom said during a press conference announcing the lawsuit. “It’s a serious and sober moment, and I’d be … lying to you if I said it can be quickly undone," he averred.
Impact Shorts
More ShortsAccording to Newsom’s Thursday statement, California is a major contributor to economic growth nationally, with the money it sends to the federal government outpacing what it receives in federal funding by $83 billion.
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