California economy grows 5% to record $4.25 trillion in 2025
New federal data cited by Gov. Gavin Newsom’s office shows the state grew 5%, maintaining its position as the largest economy in the United States.
SACRAMENTO, Calif. — California’s economy grew 5% in 2025, reaching a record nominal gross domestic product of $4.25 trillion, according to data cited by Gov. Gavin Newsom’s office from the U.S. Bureau of Economic Analysis.
The governor’s office said California remained the largest state economy in the nation, accounting for 13.8% of the U.S. economy. The state’s economic output exceeded that of Texas, Florida and New York, which were reported at $2.904 trillion, $1.835 trillion and $2.468 trillion, respectively.
Newsom said the numbers show California continues to outperform critics and remains the country’s leading economic engine.
“We’re proud that our economy continues to grow — year after year, for more than a decade — because that growth means we can keep investing in people, in innovation, and in the future of this state,” Newsom said in a statement.
According to the governor’s office, California’s GDP has grown by $1.182 trillion since Newsom took office in 2019. The office also said the state recorded gains of more than $200 billion in each of the past two years.
State officials pointed to California’s economic development strategies, including the Governor’s Economic Blueprint and Jobs First plan, as part of the state’s long-term approach to growth. The plans focus on investment in key sectors, regional economic development and access to higher-paying jobs.
The governor’s office also cited California’s technology, health care, clean energy, higher education, trade and venture capital sectors as major contributors to the state’s economic performance. California has more than 600 colleges and universities and produces more engineers than any other state, according to the statement.
Officials said California companies continue to attract significant investment, including a large share of U.S. venture capital funding. The state is also home to major ports, including the Port of Los Angeles, which handles more than $300 billion in cargo annually, according to the governor’s office.
The statement said California posted the largest dollar increase among the four largest state economies in the fourth quarter of 2025, with a $44.5 billion gain.
