California has overtaken Japan to become the world’s fourth-largest economy, Governor Gavin Newsom announced. The state’s GDP reached $4.1 trillion, edging past Japan’s $4.02 trillion, based on IMF and BEA data. With a 6% growth rate in 2024, California outperformed major economies like China and Germany. Over the past four years, its economy grew at an average rate of 7.5%, driven by innovation and sustainability. Governor Newsom credited the success to strong investments in technology, manufacturing, and clean energy. He also warned that federal tariff policies could harm California’s economic momentum. California leads the U.S. in business startups, manufacturing jobs, and venture funding. It also filed a lawsuit against federal tariffs, arguing they could shrink the national economy by $100 billion each year.