California's economy has surpassed Japan's, state Gov. Gavin Newsom announced, as he warned of potential impacts in the Golden State from President Trump's sweeping tariffs. The big picture: "CA just became the 4th largest economy in the WORLD,

California’s economy continued to grow at a fast clip of 6% in 2024, according to data and Newsom’s office. The top three economies in the world all grew at slower rates: 5.3% in the entire U.S., 2.6% in China and 2.9% in Germany.

California's economy has overtaken that of the country of Japan, making the US state the fourth largest global economic force. Governor Gavin Newsom touted new data from the International Monetary Fund (IMF) and the US Bureau of Economic Analysis showing California's growth.