Staff Reporter
California Governor Gavin Newsom announced on April 23 that the state has now secured the title of the fourth-largest economy in the world, surpassing Japan.
According to Newsom’s spokesperson, Tara Gallegos, the governor based this announcement on preliminary estimates of nominal gross domestic product (GDP) for 2024 from the U.S. Bureau of Economic Analysis (BEA).
Nominal GDP reflects the value of goods and services using current market prices and is not adjusted for inflation, unlike real GDP, which accounts for inflation. Newsom also referenced data released on April 22 by the International Monetary Fund (IMF), which ranks countries by GDP.
The BEA estimated California’s GDP for 2024 at $4.1 trillion, while Japan’s GDP stood at $4.03 trillion, according to the IMF. In his statement, Newsom highlighted that California ranks fourth globally, following the United States ($29.2 trillion), China ($18.7 trillion), and Germany ($4.7 trillion).
Newsom pointed out that California’s economy experienced a 6 percent growth rate in 2024, outpacing the top three economies in the world. He emphasized the strength of California’s agriculture, tech, and manufacturing sectors, stating, “California isn’t just keeping pace with the world—we’re setting the pace. Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”
However, Michael Mische, a professor of business management at the University of Southern California, noted that California’s ranking may be more reflective of the struggles faced by other economies last year. “California’s number four position has more to do with the poorly performing economies of Japan and Germany than it does with any specific initiatives within the state,” Mische explained.
From 2019 to 2024, California’s economy grew by 13.3 percent, compared to Japan’s 0.9 percent and Germany’s 0.3 percent increase. Mische added, “Japan has been in a prolonged state of decline, while Germany is dealing with high labor and energy costs.”
