US’ California state hits $4.1 trn GDP in 2024, surpasses Japan

Only the United States, China, and Germany now rank higher than California in global economic size. The state’s economy grew at 6 per cent in 2024—outpacing the growth rates of the US (5.3 per cent), China (2.6 per cent), and Germany (2.9 per cent). From 2021 to 2024, California’s GDP expanded at an average annual rate of 7.5 per cent. However, IMF projections suggest India may surpass California by 2026.

California has overtaken Japan to become the world’s fourth-largest economy in 2024, with its GDP reaching $4.1 trillion, according to IMF and BEA data.
While outperforming the US, China, and Germany in 2024 GDP growth, Governor Gavin Newsom warned of risks from federal tariff policies and has filed a lawsuit challenging the president’s broad use of emergency trade powers.

“California isn’t just keeping pace with the world—we’re setting the pace. Our economy is thriving because we invest in people, prioritise sustainability, and believe in the power of innovation,” Governor Gavin Newsom said in a statement.

Dubbed the economic backbone of the nation, California leads in sectors such as technology, manufacturing, agriculture, and venture capital. It houses over 36,000 manufacturing firms employing 1.1 million people and contributes over $83 billion more to the federal government than it receives.

Despite the achievement, Governor Newsom cautioned that federal tariff policies pose a risk to continued growth. Last week, California filed a lawsuit challenging the President’s use of emergency powers to impose sweeping tariffs. The state argues these measures are harming consumers, businesses, and state economies.

Newsom warned, “Our progress is threatened by the reckless tariff policies of the current federal administration… California’s economy powers the nation, and it must be protected.”

Fibre2Fashion News Desk (KD)