California's economy is the 4th largest in the world behind the US, China, and Germany with GDP reaching an estimate $4.1 trillion to over $4.3 trillion, surpassing Japan. if the states of the U.S. were compared directly with other countries. The state's GDP grew at an annualized rate of 4.5% in the third quarter of 2025, driven by strong performance in technology, information, and business sectors