In 2024, California achieved a GDP of $4.10 trillion, surpassing Japan and becoming the fourth largest economy in the world.
California Ranks 4th Globally
According to data from the International Monetary Fund and the U.S. Bureau of Economic Analysis, California has overtaken Japan in its gross domestic product, which stood at $4.10 trillion, while Japan's was at $4.01 trillion. This information was announced by California Governor Gavin Newsom, who stated, 'California isn’t just keeping pace with the world, we’re setting the pace.'
Impact of Trump's Tariffs on California's Economy
Governor Gavin Newsom also expressed concern about Donald Trump's tariff policies, stating that the progress California has made is 'threatened by the reckless tariff policies of the current federal administration.' He filed a lawsuit aiming to block the president's power over these tariffs, as California's economy plays a key role in the national economy. The tariffs imposed by the Trump administration include 10% on almost all goods coming into the U.S. and 25% on imports from Mexico and Canada. These measures negatively affect California's businesses.
Japan Faces Economic Challenges
Japan's downturn is not due to mere luck but instead stems from long-term issues such as a shrinking population and an aging workforce. These factors are putting pressure on the country's economy, a situation confirmed by the recent downgrade of Japan's economic forecast from the IMF.
California's economic stature, surpassing Japan, showcases its robust economic structure. However, Governor Newsom warns that current tariff policies could jeopardize this success.
