California’s economy overtook Japan to become the fourth largest economy in the world
California’s economy has overtaken that of Japan, making the American state the fourth largest economic power in the world, trailing only the United States as a whole, Germany and China. About this informs Air Force.
According to the International Monetary Fund (IMF) and the US Bureau of Economic Analysis, California’s gross domestic product (GDP) will reach $4.10 trillion in 2024, surpassing Japan, whose GDP last year was $4.01 trillion.
Currently, California’s GDP lags the total US GDP by $29.18 trillion, China by $18.74 trillion, and Germany by $4.65 trillion. At the same time, according to the IMF, the economy of the state is the most dynamic among the four leading economies of the world.
“California isn’t just keeping up with the world—we’re setting the pace.” California Governor Gavin Newsom said after the data were released.
California is home to the largest share of US manufacturing and agricultural production, and is home to the country’s two largest seaports. In addition, the state’s Silicon Valley is a leader in the development of cutting-edge technological innovation, and the state itself is considered one of the centers of the global entertainment industry.
Meanwhile, Gavin Newsom recently expressed concern about the future of the state’s economy amid the new US administration’s tariff policy, which has disrupted global markets and trade. The Governor of California is a staunch Democrat and a possible candidate for the post of President of the United States from the Democratic Party in the 2028 elections. He recently filed a lawsuit challenging Donald Trump’s authority to impose tariffs.
Since returning to power, Republican Trump has imposed 10% tariffs on almost all countries that export goods to the US, which are due to take effect after a 90-day delay he announced. Separately, 25 percent tariffs were imposed on goods from Mexico and Canada. The highest tariffs were imposed on China — 145%.
Last week, the Trump administration announced that new and existing tariffs on some Chinese goods would take the total burden up to 245%. In response, China raised tariffs on American goods by 125%. Thus, the USA found itself in a state of trade war with the world’s second largest economy.
“While celebrating this success (California’s economic performance), we recognize that our progress is in jeopardy because of the reckless tariff policies of the current federal administration. California’s economy feeds the country and needs to be protected.”, said Governor Newsom.
