California has officially surpassed Japan to become the world’s fourth-largest economy, according to new figures from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA) released this week.
With a nominal Gross Domestic Product (GDP) approaching $4.1 trillion in 2024, California now accounts for roughly 14% of total U.S. economic output. The Golden State’s impressive economic performance leaves it trailing only the United States, China, and Germany on the global stage, while Japan, burdened by an aging population and sluggish growth of just 0.1 percent, has slipped to fifth place with an estimated GDP of $4 trillion.
California’s rapid ascent is driven by a diverse and resilient economic base. Leading the charge is its $1 trillion tech sector, anchored by Silicon Valley, alongside a manufacturing industry that supports 1.1 million jobs. Tourism also played a major role, with the state posting a record-breaking $150 billion in visitor spending.
Additionally, California’s agricultural sector remains a critical pillar, while robust international trade — valued at nearly $675 billion annually — has provided further momentum. Overall, the state’s economy expanded by 6% over the past year, outpacing growth rates in the world’s three largest economies.
The new data underscores California’s unique economic power and its ability to thrive even amid global challenges, positioning it as a major player not just in the United States, but on the world stage.
