California, October 15, 2025
News Summary
California has achieved a remarkable economic milestone by surpassing Japan with a nominal GDP of $4.1 trillion, solidifying its position as the world’s fourth-largest economy by 2024. The state exhibited a robust growth rate of 6%, significantly outpacing other global economies. Key factors driving this growth include substantial investments in technology and agriculture, despite challenges like high living costs and an ongoing homelessness crisis. As California navigates these dynamics, it remains a pivotal player on the world economic stage.
California has made significant economic strides, surpassing Japan to become the world’s fourth-largest economy. By the close of 2024, California’s nominal gross domestic product (GDP) reached $4.1 trillion, exceeding Japan’s nominal GDP of $4.02 trillion. This new economic ranking positions California just behind the United States, which has a GDP of $29.18 trillion, China at $18.74 trillion, and Germany with $4.65 trillion.
The state showcased a robust growth rate of 6% in 2024, outperforming other major economies, including the U.S. (5.3%), China (2.6%), and Germany (2.9%). California’s Governor announced the updated figures, presenting the state as a leader on the world stage, indicating it is not merely keeping up but setting the economic pace.
Factors Contributing to Economic Growth
California’s strong performance can be attributed to various factors, including substantial investments in people, an emphasis on sustainability, and strong innovation. The state is a leading force in the technology sector, employing 20% of its workforce in technology-related jobs. Furthermore, it is recognized as the top agricultural producer in the nation, with agricultural exports totaling approximately $24.3 billion in 2023.
Federal Contributions
California’s economic footprint is magnified by its contribution to federal taxes, providing $83 billion annually more than it receives in federal support. However, the state’s economic interests were placed at risk when the previous administration implemented tariff policies, prompting California’s government to take legal action to protect its economic power.
Population Growth and Challenges
Despite an ongoing affordable housing crisis, California has experienced population growth, primarily fueled by immigration and natural birth rates. Despite these positive trends, the state continues to grapple with high living costs and a prominent homelessness crisis.
Changing Economic Landscape
California’s ascent from fifth to fourth place in global economic rankings occurred after initially achieving this status in 2017 and reclaiming the position in early 2025. Additionally, fluctuations in currency exchange rates, particularly the weakening of the Japanese yen against the dollar, have played a role in its newfound standing. The International Monetary Fund (IMF) has issued a cautious outlook for global economic growth, highlighting potential risks such as prolonged uncertainty and protectionism.
As California continues to rise economically, it faces the dual challenge of maintaining growth while addressing ongoing social issues, creating a complex but dynamic landscape.
FAQs
What is California’s nominal GDP as of 2024?
California’s nominal gross domestic product (GDP) reached $4.1 trillion at the end of 2024.
What economic ranking does California hold in the world as of early 2025?
California now ranks fourth in the world, behind the United States, China, and Germany.
What contributed to California’s economic growth in 2024?
Factors contributing to California’s economic performance include significant investments in people, a focus on sustainability, and innovation.
What risks has the IMF identified for global economic growth?
The IMF has highlighted potential risks such as prolonged uncertainty, protectionism, and financial market corrections.
Key Features of California’s Economic Achievement
| Feature | Details |
|---|---|
| Nominal GDP | $4.1 trillion |
| Global Rank | Fourth largest economy |
| Growth Rate in 2024 | 6% |
| Key Industries | Technology & Agriculture |
| Federal Tax Contribution | $83 billion annually more than received |
| Population Growth Factors | Immigration & natural birth rates |
| Ongoing issues | High living costs & homelessness crisis |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: California’s Economy is Now the 4th Largest in the World
- Business Insider: California Economy Surpasses Japan
- The Guardian: California Economy and Global Ranking
- USA Today: California’s GDP and Economic Growth
- Visual Capitalist: Mapped – The World’s Largest Economies
- Wikipedia: Economy of California
- Google Search: California Economy 2025
- Google Scholar: California Economy
- Encyclopedia Britannica: California
- Google News: California Economy
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
