California’s economy has reached a historic milestone, officially becoming the fourth largest in the world. According to newly released data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA), the Golden State’s nominal GDP rose to $4.1 trillion, positioning it just behind the United States, China, and Germany in global economic rankings.
“California isn’t just keeping pace with the world, we’re setting the pace,” Governor Gavin Newsom said. “Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation.”
In 2024, California outpaced the world’s top three economies in growth, posting a 6% GDP increase compared to the U.S. (5.3%), China (2.6%), and Germany (2.9%). The state’s economy has grown steadily over the past four years, averaging 7.5% annual growth although projections suggest that India may move ahead of California by 2026.
The news underscores California’s role as the economic engine of the United States. With leadership in sectors such as technology, agriculture, clean energy, and manufacturing, the state leads in new business formation and venture capital investment. Events like Coachella and Stagecoach continue to boost local economies, generating nearly $700 million annually.
