California’s economy has established itself as a global powerhouse during Governor Gavin Newsom’s tenure, with new data highlighting the state’s influence on the nation’s economic growth and financial markets.
Citing data from a recent Bloomberg News report, the governor’s office said in a statement that California’s economy has continued to flourish despite President Donald Trump’s “failed economic policies and sustained attacks” from a section of the media.
According to the report, California has emerged as the leading-performing economy among all 50 states, even outperforming some developed countries.
Calling Governor Newsom an “economic maestro,” the report said that California (with a population of 39 million) surpassed Japan (population 123 million) as the fourth-largest economy.
A $4 Trillion Economy
After Governor Newsom was sworn in as the governor in January 2019, California’s GDP surged 40% to over $4 trillion, according to Bloomberg. This accounts for more than 14% of the total national output.
California’s GDP growth also outpaced major economies, including China (32%) and Germany (16%).
Despite being home to less than 12% of the nation’s population, California accounted for more than 40% of the growth in the value of the country’s publicly traded equities.
Companies based in California are thriving, another marker of economic growth. Firms in the state spent $527 billion annually on acquisitions during Governor Newsom’s tenure, almost three times the $179 billion spent annually in the 20 years before he took office.
California Becomes Fourth Largest Economy
California’s global economic standing was cemented by data which revealed that the state ranked among some of the biggest global economies.
Citing data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA), Governor Newsom announced in April 2025 that California’s GDP placed it fourth in global rankings.
Significantly, California was the only state to feature ranking, which includes major countries. In 2024, California’s growth rate was 6%, placing the state fourth and behind the U.S., China, and Germany in the global rankings.
A driver of the nation’s economic growth, the statement said California sends over $83 billion more to the federal government than it receives in federal funding.
California’s Growth Trajectory
Across the country, California’s GDP grew at a 4.5% annualized rate, representing the state’s fastest growth since the second quarter of 2023, The Orange County Register reported citing the third quarter report from the Bureau of Economic Analysis. California outperformed two significant economic rivals: Texas (4.2% growth) and Florida (3.5% growth).
Recent economic projections indicate that California’s growth will stay strong amid broader labor market challenges.
According to the spring 2026 UCLA Anderson Forecast for the U.S. and California, the state has grown faster than the nation for four consecutive quarters.
Despite payroll employment declining in 2025, the unemployment rate has remained above 5% for almost two years.
California’s ability to sustain stronger growth than the rest of the nation highlights the resilience of its core industries, particularly the AI, aerospace, technology, and innovation sectors, according to the study.