California has surpassed $4.5 trillion in economic output, according to new federal data from the U.S. Bureau of Economic Analysis, making it the first state to reach that milestone.
Since 2019, the state's economy has grown by $1.58 trillion. The state's private sector alone has crossed the $4 trillion mark for the first time.
California's economy expanded by nearly $300 billion in the past year, the largest dollar gain of any state. This exceeded second-place Texas by $76 billion, the data shows.
The state ranks first in economic output across agriculture, manufacturing, technology, entertainment, healthcare, and wholesale trade. Manufacturing accounted for $391 billion in economic output in 2025, representing 9% of the state's total GDP. The state accounted for more than 40% of U.S. computer and electronics manufacturing and more than half of U.S. film and sound-recording output.
On the individual level, total wages and salaries grew by 5.2% this quarter, and California led the nation in personal-income dollar gains, the announcement said. The state is home to more than 4.3 million small businesses, employing 7.6 million people.
California represents only 11.5% of the U.S. population but accounts for nearly 14% of U.S. GDP. The state is the world's fourth-largest economy, according to the announcement.