TLE-Anaheim-2025

California Ranked World’s 4th Largest Economy

by Keziah Olsen, LCMP


TLE-Anaheim-2025


In 2025, California surpassed Japan to reclaim its spot as the fourth largest economy in the world, surpassed only by the United States as a whole, China, and Germany. The state first did so in 2024, with a Gross Domestic Product (GDP) of $4.1 trillion to beat Japan’s $4.02 trillion. After a slight fall backwards in October 2025, California is back in the top four with a GDP of $4.296 billion – a $16 billion lead on Japan.

A 2025 study by University of California Agriculture and Natural Resources (UC ANR) shows that 5.7% of California’s economy is made up of working landscapes – think: agriculture, forestry, outdoor recreation, etc. – and 4% is made up of construction, comprising almost 10% combined.

Though impressive news, Japan, India, and the United Kingdom are following very closely behind with only a $300 billion – or 7% – gap to keep the state in its position. India is projected to be a fierce competitor for this spot as the country’s fast-growing economy and the largest population in the world, as of 2023.

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