California Moves Up to Fourth-Largest Economy In the World, and Boy Is Gavin Newsom Crowing About It

California has achieved a historic milestone by becoming the fourth-largest economy in the world, surpassing Japan with a Gross Domestic Product of $4. 1 trillion. Governor Gavin Newsom celebrated this achievement, emphasizing that California is setting the pace for global economic growth. In 2024, California's growth rate of 6% outperformed the United States, China, and Germany. The state has seen an average nominal GDP growth of 7.

5% from 2021 to 2024, highlighting its resilience and innovation. Despite the impressive growth figures, the methodology used for the GDP comparison has raised concerns, as the International Monetary Fund does not categorize California independently. Newsom pointed out that President Trump's tariff policies could shrink the U. S. economy by $100 billion annually, which prompted the state to take legal action against these tariffs.

This economic achievement also serves as a rebuttal to claims that Texas is a better business environment. California's economic prowess continues to challenge existing narratives about state competitiveness.