This US state just became the world's fourth largest economy
What's the story
California has officially overtaken Japan to become the world's fourth-largest economy, Governor Gavin Newsom announced.
The milestone was confirmed by recent data from the International Monetary Fund (IMF) and US Bureau of Economic Analysis.
The data shows California's gross domestic product (GDP) stood at $4.1 trillion in 2024, narrowly beating Japan's GDP of $4.01 trillion.
Only Germany ($4.6 trillion), China ($18.7 trillion), and the US ($29.1 trillion) are bigger than California.
Economic powerhouse
California: A hub of innovation and production
California isn't just an economic powerhouse but also a key contributor to US manufacturing and agricultural output.
The state is known as a global hub for technological innovation, entertainment, and is home to two of America's largest seaports.
Governor Newsom had previously opposed President Donald Trump's tariffs and has raised concerns over their potential impact on California's economy.
Legal action
A lawsuit against federal tariff policies
Governor Newsom has filed a lawsuit challenging President Trump's authority to impose tariffs, which have disrupted global markets and trade.
Trump imposed a 10% levy on nearly all countries exporting to the US, after a 90-day pause on higher tariffs.
He also imposed an additional 25% tariff on Mexico and Canada, and initiated a trade war with China by imposing import taxes up to 145% on Chinese goods entering the US.
Economic resilience
California's economy: A beacon of growth
California's GDP growth rate for 2024 is projected at 6%, ahead of the US's projected growth rate of 5.3%, China's at 2.6% and Germany's at 2.9%.
The new ranking comes six years after California overtook the UK to become the world's fifth-largest economy.
Despite facing challenges such as an affordable housing shortage and a homelessness crisis, California has witnessed population growth in recent years, reflecting resilience amid economic challenges.