California Economy Tops $4.5 Trillion for the First Time in New Federal Data, Holding World No. 4 Ranking
SACRAMENTO — Governor Gavin Newsom announced on October 5 that new data from the U.S. Bureau of Economic Analysis show California's economic output has surpassed $4.5 trillion, making it the first U.S. state to cross that threshold while remaining the world's fourth-largest economy. Since 2019, the state's economy has grown by more than half, adding $1.58 trillion, and its private sector alone has passed $4 trillion for the first time.
California added nearly $300 billion in the past year alone — the largest dollar gain of any state, $76 billion more than second-place Texas — and expanded 3.5 percent after inflation in 2025, outpacing Texas, Florida and New York. Total wages and salaries grew 5.2 percent, and California ranked first for personal-income dollar gains. The state accounts for about 11.5 percent of the U.S. population but nearly 14 percent of national GDP.
By sector, California ranked first in output in 2025 across agriculture, manufacturing, technology, entertainment, healthcare and wholesale trade. Manufacturers produced $391 billion, 9 percent of state GDP, employing more than 1.2 million workers paid over $25,000 above the average non-farm wage, and exported $159 billion in goods in 2024. The state is home to more than 4.3 million small businesses, 99.8 percent of all businesses, employing about 7.6 million people.
Newsom credited working people, small businesses and entrepreneurs for the milestone. The administration also highlighted recently signed legislation updating state antitrust and consumer-protection laws, streamlining tenant-improvement approvals for retailers, shielding small businesses from abusive financing practices, and clearing a regulatory barrier to authorize sales of E15 fuel, a lower-cost gasoline blend with up to 15 percent ethanol.
Published by GSM · USA (original Chinese edition)
Photo: 图：加州州长办公室发布的「加州经济总量突破4.5万亿美元」官方图。来源：加州州长办公室（gov.ca.gov），政府官方发布 / Official graphic from the Office of the Governor of California (gov.ca.gov).
