
"In the third quarter, California's economy produced goods and services at a nation-leading annual rate of $4.296 trillion - a 4.5% increase from the previous year, according to the BEA. That was up from the second quarter's $4.215 trillion rate. Only the U.S. ($31 trillion), China ($19 trillion), and Germany ($5 trillion) had larger business output last year, according to the latest tallies. California's revised GDP pace pushed it ahead of Japan's $4.28 trillion economy - but by just $16 billion."
"But currency is a wildcard in the ranking math. The American dollar has been weak for the past year, which may help California's global "rivals" on this scorecard when the IMF's next update comes out in April. It's a tight race for the world's No. 4 economy. According to IMF data, just behind Japan and California is India, with an economy worth $4.125 trillion in 2025. Then there's the United Kingdom at $3.96 trillion."
California's economy recorded an annualized $4.296 trillion GDP in the third quarter of 2025, a 4.5% year-over-year increase and up from $4.215 trillion in Q2, per BEA data. That pace places California ahead of Japan's $4.28 trillion economy by roughly $16 billion, making California the fourth-largest economy behind the U.S., China, and Germany. Dollar-denominated rankings are sensitive to exchange-rate shifts, and a weaker U.S. dollar could alter positions when the IMF updates country GDP figures. India ($4.125 trillion) and the United Kingdom ($3.96 trillion) remain close contenders.
Read at The Mercury News
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