California has overtaken Japan to grow to be the world’s fourth-largest financial system, with a nominal GDP of $4.1 trillion in 2024, surpassing Japan’s $4.02 trillion GDP.
The massive image: Gov. Gavin Newsom highlighted California’s financial progress of 6% in 2024, positioning the state behind solely the US, China and Germany by way of financial dimension.
- Newsom praised California’s thriving financial system on account of investments in folks, sustainability, and innovation, emphasizing the state’s function as a worldwide financial chief.
- Nonetheless, Newsom expressed considerations concerning the impression of President Trump’s tariff insurance policies on California’s financial power, referring to them as reckless and a risk to the state’s financial system.
Go deeper: California contributed 14% to the nation’s GDP in 2024, pushed by industries corresponding to Silicon Valley, actual property, and finance, making it an important financial powerhouse for the US.
- Governor Newsom just lately filed a lawsuit towards President Trump over the implementation of tariffs by emergency powers, citing detrimental penalties on Californian households and companies.
- The lawsuit argues that Trump’s unilateral tariff actions have disrupted provide chains, elevated prices, and inflicted important financial harm on California, the most important financial system within the U.S.
- California engaged in substantial commerce in 2024, totaling practically $675 billion, with Mexico, Canada, and China being the state’s high three commerce companions.
- Over 40% of California’s imports got here from Mexico, Canada, and China, with these international locations accounting for a good portion of the state’s whole imports final yr.
What they’re saying: “California isn’t simply preserving tempo with the world – we’re setting the tempo,” Newsom stated. “Our financial system is prospering as a result of we put money into folks, prioritize sustainability and consider within the energy of innovation.”
