Newsom: California is now world’s 4th-biggest economy, pips Japan
California governor Gavin Newsom boasted that his state has become the world’s fourth-largest economy, following only the US, China and Germany in global rankings.
The state’s nominal GDP reached $4.1 trillion last year, edging past Japan’s $4.02 trillion, Newsom said, citing newly released IMF country-level data and preliminary state data from US Bureau of Economic Analysis.
“California isn’t just keeping pace with the world – we’re setting the pace,” Newsom said. “Our economy is thriving because we invest in people, prioritise sustainability and believe in the power of innovation.” The Democratic governor is leveraging the state’s economic heft to challenge President Trump’s trade and other policies, portraying California as a global economic force positioned to resist federal actions he says could harm key industries.
California’s economy accounts for about 14% of US GDP, with realty, finance and technology sectors among top contributors, according to Public Policy Institute of California. After years of declines, California’s population grew by roughly 250,000 people last year, driven by a rebound in births and gains from international migration. Newsom has argued the state has the most to lose from tariffs because of the size of its industries. Last week, he sued Trump govt over his tariff hikes, arguing the Republican president lacks the authority to implement it without congressional approval. He vowed to negotiate with foreign leaders to spare California businesses from retaliatory tariffs.
“While we celebrate this success, we recognise that our progress is threatened by the reckless tariff policies of the federal administration,” said Newsom, a potential presidential candidate in 2028. “California’s economy powers the nation, and it must be protected.”
IMF this weekhas sharply lowered forecasts for world growth this year and next, warning the outlook could further deteriorate as Trump’s tariffs spark a global trade spat.
California’s new ranking might be short-lived, however. IMF projects India will overtake it in 2026. bloomberg
