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goldest state

California just leapfrogged Japan to become the world’s fourth-largest economy

The Golden State is growing faster than the world’s top three economies, though looming tariffs could threaten its momentum.

Hyunsoo Rim

California has officially become the world’s fourth-largest economy, bumping Japan down to fifth, according to new data from the International Monetary Fund and the Bureau of Economic Analysis, Governor Gavin Newsom announced. 

The Golden State’s nominal GDP reached $4.1 trillion in 2024, surpassing Japan’s $4.03 trillion, and now trails only the US ($29.2 trillion), China ($18.7 trillion), and Germany ($4.7 trillion). Within America itself, it’s 51% bigger than Texas ($2.7 trillion), the country’s second-largest economy.

California GDP chart
Sherwood News

West Coast represent

California is growing faster than the world’s top three economies, with the state’s GDP jumping 6% year over year, outpacing growth in the US (5.3%), China (2.6%), and Germany (2.9%). A mix of factors are fueling the boom, including robust population growth (now at almost 40 million) and the breadth of California’s economic base. Its nearly $1 trillion tech sector, a manufacturing base employing over 1.1 million workers, record-breaking tourism spending of $150.4 billion, and a powerhouse agriculture industry have all helped the state’s rising fortunes.

Meanwhile, Japan’s economy is slowing: its real GDP growth fell to just 0.1% last year, down from 1.5% in 2023, amid an aging and decreasing population — which will likely lead to a shrinking labor force and mounting social care costs. This week, the IMF has even lowered Japan’s growth forecast, as President Trump’s sweeping tariffs cloud the export-dependent nation’s outlook.

California itself isn’t immune, either. Last week, Newsom filed a federal lawsuit challenging Trump’s unilateral tariffs, warning of “immediate and irreparable harm” to California’s trade-reliant economy. Indeed, California’s global trade totaled nearly $675 billion last year — with Mexico, Canada, and China being its top three partners, supplying more than 40% of the state’s imports.

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And though the US players’ performance on the pitch might not have lived up to the high drama off it, American soccer fans certainly showed up. According to early estimates, the 4-1 defeat against Belgium was the most watched soccer telecast in US history, hauling some 40 million viewers on average across the coverage on Fox and Telemundo.

That may be a record tally in the US for the sport that much of the world calls some variant of “football” — besting the 36.2 million who tuned in to watch the team’s previous knock-out match — but it’s still peanuts in comparison to the sport that shares the same name in the States.

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