The governor’s office released U.S. Bureau of Economic Analysis data showing California’s total economic output topped $4.5 trillion; Governor announced the milestone and framed it as a sign of broad growth across sectors.

The BEA figures show the private sector alone crossed $4 trillion for the first time; the state’s economy increased by nearly $300 billion in the past year, which the release said was $76 billion more than second-place Texas.

The release said California expanded 3.5% after inflation in 2025 and that total wages and salaries grew 5.2% over the past year; the governor’s statement called those gains a boost to workers and entrepreneurs.

The governor’s office listed sector detail showing manufacturing produced $391 billion in output in 2025, supported 1.2 million manufacturing workers, and exported $159 billion in goods in 2024; the release also said California accounted for over 40% of U.S. computer and electronics manufacturing and more than half of U.S. film and sound-recording output in 2025.

The release reported that California represents 11.5% of the U.S. population but nearly 14% of U.S. GDP and cited a Bloomberg analysis ranking the state as the world’s fourth-largest economy.

The Office of the Governor said Newsom recently signed several laws intended to reinforce the state’s economic position; the measures include updates to antitrust and consumer-protection law to give the attorney general and district attorneys new authority, rules to speed some retail tenant improvements by allowing qualified architects or engineers to certify plans, protections against abusive small-business financing, funding for free or low-cost small-business technical assistance, and removal of a regulatory barrier to sell E15 fuel in California.

The figures the governor’s office circulated measure statewide economic output and personal-income dollars; they come from the BEA and a Bloomberg analysis and do not, in themselves, describe household-level costs or how gains are distributed across regions and income groups.

State

Gavin Newsom

Governor · Democrat

Named 2 times in this story.

Everything the Journal has reported on GavinOfficial site

Portrait: Official portrait

Sources & methodology

This report was written from the primary materials below. Links open at the original publisher.

Office of the Governor of California

See something we should correct? Read our corrections policy.