Recent data from the International Monetary Fund (IMF) and the U.S. Bureau of Economic Analysis (BEA) show that the Golden State’s nominal gross domestic product (GDP) reached about $4.1 trillion in 2024 .

California’s economic lift has been well known for years, but it wasn’t until April 2025 that the state officially overtook Japan. Governor Gavin Newsom’s office announced that California’s nominal GDP of $4.1 trillion was ahead of Japan’s $4.02 trillion and left California behind only the United States ($29.18 trillion), China ($18.74 trillion) and Germany ($4.65 trillion).

Newsweek confirmed the IMF and BEA figures, noting that the comparison places California fourth in global rankings. The state’s growth rate of 6 % in 2024 also outpaced the top three economies (U.S. 5.3 %, China 2.6 %, Germany 2.9 %).

Why California’s economy is so big

California is the largest sub‑national economy in the world. Finance, business services, government and manufacturing are among the most dominant sectors.

Major coastal cities like Los Angeles and San Francisco are centres for media (Hollywood), technology and trade, while the Central Valley’s agriculture industry produces over half of America’s fruits, vegetables and nuts.

California also hosts many of the world’s most valuable companies . Silicon Valley is home to Apple, Alphabet, Nvidia and scores of other technology giants, and 78 of the Fortune 100 companies are headquartered in the state. This concentration of innovation attracts venture capital and skilled labour, feeding a self‑reinforcing cycle of economic growth.

Governor Newsom attributes the state’s prosperity to investments in people, sustainability and innovation. California has been the top U.S. state for new business starts and access to venture capital, while also leading the nation in agricultural production.

More than 36,000 manufacturing firms employ about 1.1 million Californians . Even as production costs rise, these firms continue to create industries spanning aerospace, electronics and zero‑emission vehicles.

While California now sits above Japan, its position is not guaranteed. Japan’s economy is projected to rebound by about 4 % in 2025, and India, the world’s fastest‑growing large economy, is expected to continue climbing.

Governor Newsom’s office cautions that India could surpass California as early as 2026. Economic rankings can also shift due to currency fluctuations, recession or policy changes. For example, California’s ranking rose partly because Japan’s growth slowed in 2024, illustrating how relative performance matters.

According to the latest rankings from the World Population Review, five countries stand out for having the most robust, effective, and high-performing education systems globally.

These rankings take into account factors such as literacy rates, academic achievement, accessibility, teacher-to-student ratios, and overall educational outcomes.

South Korea

South Korea is frequently ranked among the top countries in education, and for good reason. The country has built a reputation for academic rigour, high student performance, and an intense cultural focus on education. According to World Population Review metrics—South Korea stands out, particularly in areas such as mathematics, science, and literacy.

Denmark

Denmark's education system is renowned for its student-centred approach, emphasizing autonomy, self-directed learning, and collaboration. Danish schools prioritise social and emotional learning, recognising the importance of emotional intelligence in academic and personal success. The country's commitment to sustainability and environmental education also sets it apart, with many schools like Dania Academy incorporating eco-friendly practices and green technologies into their curricula.

Netherlands

The Netherlands boasts a highly regarded education system, with a strong focus on innovation, entrepreneurship, and vocational training. Dutch schools prioritise practical skills and hands-on learning, with many students participating in apprenticeships and work-based learning programmes. The country's commitment to internationalization and language education also sets it apart, with many students fluent in multiple languages and prepared for success in a globalised economy .