California Surpasses Japan to Become World’s Fourth-Largest Economy

California has overtaken Japan to become the world’s fourth-largest economy, according to new data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA).

• The state’s nominal GDP reached $4.1 trillion in 2024, surpassing Japan’s $4.02 trillion. California now ranks behind only the United States, China, and Germany.

• Notably, California is outpacing the top three economies in growth, posting a 6% growth rate in 2024 compared to 5.3% for the U.S., 2.6% for China, and 2.9% for Germany.

• Over the past four years (2021–2024), California averaged a strong 7.5% annual nominal GDP growth.

• Despite its current standing, preliminary forecasts suggest India may overtake California by 2026 due to its rapid economic expansion.