California's economy has been ranked the fourth largest global economy as it surpassed Japan.
As reported by BBC, on Thursday, April 24, Governor Gavin Newsom publicised new data from the International Monetary Fund (IMF) and the US Bureau of Economic Analysis showing California's growth.
The data showed California's gross domestic product (GDP) reached $4.10 trillion in 2024, overtaking Japan, which was marked at $4.01 trillion.
Additionally, the state now only falls behind Germany, China, and the US as a whole.
While sharing the delightful news, Newsom said, "California isn't just keeping pace with the world – we're setting the pace."
California: The leading contributor to US economy
California, with the population of around 40 million people, leads the country's largest manufacturing and agricultural production.
The state is also home to technological innovation, two largest seaports, as is considered the centre of the world's entertainment industry.
California has outperformed the world's top economics with a growth rate of 6% last year.
Furthermore, the golden state is a major contributor to the national economy as the money it sends to the federal government exceeds, what it receives in federal funding by $83 billion.
The new rankings comes six years after California surpassed the United Kingdom and became the world's fifth largest economy.
California and President Donald Trump's tariffs
Newson also shared that President Donald Trump new policies and tariffs could but the growing economy in danger.
Last week California became the first state to sue the federal government over Trump's tariff policies, claiming that the president's actions are unlawful.
During the press conference announcing the lawsuit, Newsom noted, "No state is poised to lose more than the state of California."
Why Japan's economy is lagging behind
Japan's economy has been facing severe pressure due to its decreasing and ageing population.
The increase in elderly population has downsized the workforce, while social care cost, including healthcare, elderly care, are skyrocketing.
