California has overtaken Japan to become the world’s fourth-largest economy, with a nominal GDP of $4.1 trillion in 2024, surpassing Japan’s $4.02 trillion GDP.
The big picture: Gov. Gavin Newsom highlighted California’s economic growth of 6% in 2024, positioning the state behind only the United States, China and Germany in terms of economic size.
- Newsom praised California’s thriving economy due to investments in people, sustainability, and innovation, emphasizing the state’s role as a global economic leader.
- However, Newsom expressed concerns about the impact of President Trump’s tariff policies on California’s economic strength, referring to them as reckless and a threat to the state’s economy.
Go deeper: California contributed 14% to the nation’s GDP in 2024, driven by industries such as Silicon Valley, real estate, and finance, making it a vital economic powerhouse for the United States.
- Governor Newsom recently filed a lawsuit against President Trump over the implementation of tariffs through emergency powers, citing negative consequences on Californian families and businesses.
- The lawsuit argues that Trump’s unilateral tariff actions have disrupted supply chains, increased costs, and inflicted significant economic damage on California, the largest economy in the U.S.
- California engaged in substantial trade in 2024, totaling nearly $675 billion, with Mexico, Canada, and China being the state’s top three trade partners.
- Over 40% of California’s imports came from Mexico, Canada, and China, with those countries accounting for a significant portion of the state’s total imports last year.
What they’re saying: “California isn’t just keeping pace with the world – we’re setting the pace,” Newsom said. “Our economy is thriving because we invest in people, prioritize sustainability and believe in the power of innovation.”