California has officially surpassed Japan in becoming the fourth largest economy in the world, according to recently released data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA). The office of California Governor Gavin Newsom reported this.
California’s economy is growing faster than the world’s three leading economies. In 2024, California’s growth rate was 6% ahead of the three largest economies: the United States (5.3%), China (2.6%), and Germany (2.9%).
California’s success is long-term. The state’s economy has grown significantly over the past four years, with an average nominal GDP growth of 7.5% from 2021 to 2024.
According to preliminary data, India is projected to surpass California by 2026.
California is the third largest and most populous state in the United States, with approximately 40 million inhabitants. By the end of 2024, the state accounted for 14% of the total GDP of the United States, which was made possible by a strong technology industry in Silicon Valley and activity in real estate and finance.