April 25, 2025 – California, USA
California overtakes Japan to become the fourth biggest economy in the world. This means California now makes more money each year than Japan.
New numbers from 2024 show California’s economy is worth about $4.1 trillion. Japan’s economy is a bit smaller, at $4.02 trillion. Only the U.S., China, and Germany are ahead of California now.
If California were a country, it would be number four in the world.
California’s Economy Grew Fast
In 2024, California’s economy grew by 6%. That is more than most other places. The U.S. grew by 5.3%. China grew by 2.6%. Germany grew by 2.9%.
California’s growth is strong because it has many kinds of developments. These include technology, farming, movies, clean energy, and trade with other countries.
Technology Leads the Way
California overtakes Japan, as it is home to many big tech companies. These include Apple, Google, Meta, and Nvidia. These companies make billions of dollars and give jobs to many people.
The area called Silicon Valley is full of new tech ideas and startups. It is one of the most important tech places in the world.
Farming and Movies Are Important Too
Farming played an important role in making California the biggest economy, as California is the top state in the U.S. for farming. It grows a lot of the fruits and vegetables for the country. The Central Valley is full of farms that sell food to other states and other countries.
The movie business is also very strong. Los Angeles is a place where many Hollywood movies are made. These are watched by people all over the world.
Governor Thoughts
California’s governor, Gavin Newsom, said he is proud that California is the biggest economy. He said this shows California is strong and full of hard-working people.
“This proves what we can do,” he said. “But we still have problems to solve.”
He said some U.S. trade rules are hurting California’s economy. He also said the state has filed a lawsuit to fight against these rules. One problem is new tariffs, or extra taxes, on products from other countries. These taxes can make trade harder.
Why Japan Fell Behind
Japan’s economy is still large, but it is not growing fast. Japan has an ageing population, which means there are more old people and fewer young workers. This makes it harder for the economy to grow.
Japan also has less room for new companies and fewer workers in some fields.
California’s Big Role in the World
California now has more money and power than most countries. It is a leader in tech, entertainment, farming, and clean energy.
The state also leads in fighting climate change. It builds clean energy like solar and wind power. It also supports electric cars. These changes help the planet and create new jobs.
People around the world want to move to California, work there, or do business with the state. California’s culture, weather, and strong schools make it a popular place.
Problems Still Exist
Even after being the biggest economy, California still has some problems. Housing is very expensive. Many people cannot afford to buy or rent a home. Some people are homeless, especially in big cities like Los Angeles and San Francisco.
The state also faces climate problems like wildfires and dry weather. These can hurt people, animals, and the economy.
Looking Ahead
Experts say California will likely keep growing. The state has smart workers, new ideas, and a strong economy. But to stay in the top ranks, California must fix its problems. It needs better housing, clean energy, and help for the poor.
California is now the fourth-biggest economy in the world. This is a big deal for the state and for the U.S. It shows that one state can lead the world with the right mix of people, ideas, and hard work. California’s future looks bright — and the world is watching.
