California’s economy continues to dominate — topping $4.5 T in economic output, and remains the world’s fourth largest economy

The Golden State is growing wages and growing the economy

What you need to know: New federal data shows California has surpassed $4.5 trillion in economic production, dominates across sectors, and is a leader in increasing wages and salaries.

SACRAMENTO - While Fox News pundits and politicians in Texas and Florida attack the tentpole of the U.S. economy, Governor Gavin Newsom today announced that California has reached a new milestone as the first U.S. state to surpass $4.5 trillion in economic output. Since 2019, California's economy has increased by over half, at $1.58 trillion. Recent data also shows that California's private sector alone has now crossed the $4 trillion mark for the first time.

California didn't become a $4.5 trillion economy by accident. It happened because working people show up every day and build, grow, manufacture, invent, and move to power this state. Small businesses take the risks. Workers put in the hours. Entrepreneurs bet on the future. That's the California story, and nobody does it at our scale.

Governor Gavin Newsom

Newly released data from the U.S. Bureau of Economic Analysis shows that California ranks first in economic output across almost every sector in 2025, including agriculture, manufacturing, technology, entertainment, healthcare, and wholesale trade. California's economy grew by nearly $300 billion in the past year alone - the largest dollar gain of any state and $76 billion more than second-place taker-state Texas. These gains go deeper than just the GDP - on the individual level, total wages and salaries grew by 5.2%, and California is #1 for personal-income dollar gains this quarter. California also grew faster than Texas, Florida, and New York in 2025, expanding 3.5% after inflation.

Made in California

California, the nation's leader in manufacturing, also accounted for over 40% of total U.S. computer and electronics manufacturing and more than half of U.S. film and sound-recording output in 2025. The Golden State, home to 1.2 million manufacturing workers, pays more than $25,000 above the average non-farm wage, supporting families across the state.

The manufacturing jobs multiplier estimates that each manufacturing job supports three more in neighboring communities.

• California manufacturers produced $391 billion in economic output in 2025, accounting for 9% of the state's total GDP.

• The state's manufacturers exported $159 billion in goods in 2024.

• Since 2021, California has invested over $215 million in over 675 contracts with employers to train over 194,000 workers in the manufacturing sector.

California's economy is dominating

The Golden State represents only 11.5% of the U.S. population but is responsible for nearly 14% of U.S. GDP, 44% larger than taker-state Texas. California continues to lead the nation economically, outpacing all states and every developed nation, according to a Bloomberg analysis.

The state has more businesses than any other state, including Florida and Texas, supporting strong job creation and expanded economic opportunity for workers across the state. California is also home to more than 4.3 million small businesses, representing 99.8 percent of all businesses in the state and employing 7.6 million people.

As the world's fourth-largest economy, California continues to lead the nation where it matters most - creating new businesses, attracting venture capital, driving technological innovation, expanding advanced manufacturing, growing high-tech industries, and producing more than any other state. In fact, the Golden State continues to be the #1 state for:

• New business starts

• High-tech business

• Agriculture

• Workers

• Venture capital

Governor Newsom recently signed new legislation to continue powering California's economic engine:

✅ Making a major update to California's antitrust and consumer protection laws. Clamping down on anti-competitive behavior, encouraging competition, and expanding opportunities for entrepreneurs and workers - including by creating new authority for the Attorney General and district attorneys to combat monopolistic behavior while also protecting small businesses.

✅Helping retailers open and operate faster by allowing businesses undertaking certain tenant improvements to hire qualified architects or engineers to review and certify that building plans comply with life-safety, health, and building code requirements.

✅ Protecting small businesses from abusive financial practices by unscrupulous financing companies.

✅Ensuring access to small business technical assistance by supporting providers who offer free or low-cost one-on-one, confidential consulting and training. This will help small businesses and entrepreneurs start, grow, expand, and create jobs in California.

✅Cutting unnecessary red tape that has kept a lower-cost fuel option out of reach for California drivers. Removing a regulatory barrier to authorize the sale of E15 - gasoline blended with up to 15% ethanol - in California.