California has once again secured its position as the fifth-largest economy globally, according to a report by the World Economic Outlook released by the International Monetary Fund April 16.
“California continues to punch above its weight, overperforming all but a handful of the largest countries in the world,” said Gov. Gavin Newsom in a statement. “And with our unparalleled combination of innovation, higher education, a talented workforce, diverse industries, and unparalleled natural resources, we will continue to do so well into the future.”
Last year, California’s nominal Gross Domestic Product—or GDP—calculated based on 2023’s prices, reached almost $3.9 trillion, representing a growth rate of 6.1 percent from the previous year, according to the U.S. Bureau of Economic Analysis. On an average per-person basis, the state ranks as the second-largest economy in the world.
For the seventh consecutive year, the Golden State has maintained its position, following the United States, China, Germany, and Japan.
The U.S. leads the global economy with a nominal GDP exceeding $27 trillion, significantly ahead of China’s $17 trillion. Three other U.S. states made the top 20 list: Texas ranked 9th, New York 12th, and Florida 19th.
Growth is projected to rise this year from 2.5 percent in 2023 to 2.7 percent in the United States, according to the report, as the economy recovers from the COVID-19 pandemic. Meanwhile, China’s economy is forecasted to decelerate, with a growth rate of 4.6 percent in 2024, down from 5.2 percent the previous year.
Notably, closely trailing California, India’s economy is on a rapid growth trajectory and has maintained its position as the sixth-largest economy since surpassing the United Kingdom in 2021, according to the report.
The data also forecast a 6.8 percent growth in India’s economy for 2024 and 2025, significantly outpacing the global average of 3.2 percent, as well as the growth rates of both the United States and China.
