🚨California Now Ranks as the 4th Largest Economy in the World — But at What Cost?

As of May 4, 2025, California has officially overtaken Japan to become the fourth-largest economy in the world with a GDP of $4.1 trillion. If the state were a country, it would trail only the U.S., China, and Germany.

What’s even more striking? California’s 2024 growth rate hit 6%, outpacing the U.S. average (5.3%), Germany (2.9%), and even China (2.6%). This isn’t just a tech story — it’s a layered economic phenomenon.

What’s Driving the Boom?

• Tech Powerhouse: Over 20% of California’s workforce is employed in high-tech sectors — from AI to semiconductors, with Silicon Valley still setting the global tempo.

• Real Estate & Finance: Long-standing pillars of state GDP, even amid housing challenges.

• Agribusiness Muscle: With over $24 billion in food exports, California remains the breadbasket of America — and a player in global markets.

• Entrepreneurial Ecosystem: The number of businesses with employees has grown 72% since 1998, while job creation has surged by 4.2 million positions (+30%).

But Growth Has a Shadow

California’s rise comes with serious growing pains. Since 2022:

• The private sector lost over 150,000 jobs, while public employment surged by 361,000 — raising concerns about long-term tax sustainability.

• A deep housing affordability crisis continues to push out middle-class families.

• Outbound migration is accelerating, especially among young professionals seeking chea