California has become the world’s fourth-largest economy — bested only by the full U.S., China and Germany — Gov. Gavin Newsom’s (D) office announced this week, citing new data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA).
“California isn’t just keeping pace with the world — we’re setting the pace,” Newsom said in a statement Wednesday. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”
The Golden State previously ranked fifth, but the state’s nominal gross domestic product (GDP) hit $4.1 trillion last year, according to BEA’s preliminary data for 2024, besting Japan’s $4.02 trillion GDP during the period, per the IMF.
The BEA data showed that among states, Texas came in behind California, with a GDP of $2.7 trillion, and New York followed at $2.3 trillion.
But the California Democrat warned that President Trump’s sweeping tariff hikes could threaten his state’s standing as a global economic powerhouse.
“While we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration,” the governor said. “California’s economy powers the nation, and it must be protected.”
A White House spokesperson told The Hill in a statement that California’s progress is at risk from “foreign countries stealing the intellectual property of its leading technology firms, poor disaster management letting wildfires run ablaze and lethal drugs and violent criminals ruining its communities.”
“Under the Trump administration, California has the potential to reach new heights — if the state’s leadership wouldn’t stand in the way,” they added.
Newsom also filed a lawsuit on behalf of the state last week challenging the Trump administration’s tariff policies, arguing the trade moves would disproportionally impact California.
The governor, who cannot seek reelection next year because of term limits, has been widely floated as a potential candidate for president in 2028.
