California economy now fourth largest in the world, surpassing Japan

by · UPI

April 25 (UPI) -- According to preliminary data from the U.S. Bureau of Economic Analysis, California's economy is now the fourth largest in the world, surpassing Japan.

Data from the International Monetary Fund and the U.S. Bureau of Economic Analysis shows California's GDP at $4.1 trillion compared with Japan's $4.02 trillion.

Only the United States, China and Germany have higher GDPs.

"California isn't just keeping pace with the world -- we're setting the pace. Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation," California Gov. Gavin Newsom said. "And, while we celebrate this success, we recognize that 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."

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California's economy grew 6% in 2024 while the U.S. economic growth as a whole was 5.3%.

China's 2024 economy expanded by 2.6% and Germany's grew 2.9%.

California has 40 million people and accounts for 14% of U.S. 2024 GDP.

Newsom's office said California sends more than $83 billion more to the federal government than it receives in federal funding.

The governor's announcement on the California economy referenced the lawsuit the state filed last week against the Trump administration's tariffs.

The suit said the tariffs are causing economic damage and alleges they are being illegally applied because only Congress has tariff power.

The suit also asserts that emergency powers used by the White House to raise tariffs without congressional approval are illegal.

Twelve other states sued Wednesday in the United States Court of International Trade, also alleging the tariffs and emrgency powers used to impose them are illegal.