California Surpasses Japan as World's Fourth Largest Economy
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Synopsis
On April 25, California's economy ascended to become the world's fourth-largest, surpassing Japan, as Governor Newsom highlighted significant growth and challenges posed by federal trade policies.
Key Takeaways
- California's GDP reached $4.1 trillion in 2024.
- Surpassed Japan's economy, now ranking fourth globally.
- The state leads in new business ventures and venture capital.
- California is a major contributor to U.S. agricultural and manufacturing sectors.
- Challenges remain due to federal tariff policies.
Sacramento, April 25 (NationPress) California's economy has surpassed Japan to become the fourth largest economy globally, trailing only the United States, China, and Germany in the economic hierarchy.
The announcement was made by California Governor Gavin Newsom, referencing the latest statistics from the International Monetary Fund and the US Bureau of Economic Analysis.
In 2024, California's nominal GDP reached $4.1 trillion, outpacing Japan's $4.02 trillion, as noted by Newsom’s office amidst ongoing tensions regarding federal trade policies.
“California is not merely keeping up with the global economy; we are leading it. Our economic success is rooted in our investment in people, commitment to sustainability, and faith in innovation,” Newsom stated.
California's economy has experienced impressive growth in recent years. From 2021 to 2024, the state recorded an average nominal GDP increase of 7.5 percent, with a growth rate reaching 6 percent in 2024, according to Newsom's office.
The state ranks as the top in the United States for new business creation, accessibility to venture capital, and sectors like high-tech, manufacturing, and agriculture. The office emphasized: “California leads the nation in agricultural production and is also a manufacturing powerhouse, with over 36,000 manufacturing firms employing more than 1.1 million Californians.
Moreover, California plays a crucial role in national economic growth, contributing over $83 billion more to the federal government than it receives in federal funds.
Despite this achievement, the Governor voiced concerns over the challenges California faces, particularly regarding federal trade policies.
On April 16, California filed a lawsuit against the federal government, contesting its use of emergency powers to impose extensive tariffs. State officials argue these tariffs jeopardize California's economy and hinder ongoing progress, as reported by Xinhua news agency.
“The lawsuit aims to terminate President Donald Trump’s tariff chaos, which has caused significant economic disruption, destabilized markets, incurred losses in the hundreds of billions, and led to increased costs for consumers and businesses. These detrimental effects are expected to escalate, with Trump's tariffs projected to contract the US economy by $100 billion annually,” the office stated.
According to an analysis by research firm Trade Partnership Worldwide, California could face over $170 billion in import taxes by 2025 due to the new tariff structure.
