California has regained its bragging-rights ranking as the world’s fourth-largest economy.

Using gross domestic product as the scorecard, my spreadsheet compared fresh state-level data for the third quarter of 2025 from the Bureau of Economic Analysis with the International Monetary Fund’s October release of 2025 business output estimates for countries.

In the third quarter, California’s economy produced goods and services at a nation-leading annual rate of $4.296 trillion – a 4.5% increase from the previous year, according to the BEA. That was up from the second quarter’s $4.215 trillion rate.

Only the U.S. ($31 trillion), China ($19 trillion), and Germany ($5 trillion) had larger business output last year, according to the latest tallies.

California’s revised GDP pace pushed it ahead of Japan’s $4.28 trillion economy – but by just $16 billion. Japan had previously reclaimed the world’s No. 4 spot, surpassing California, according to the IMF’s October update of GDP results.

GDP is a broad measure of the production of goods and services, often treated as a sign of economic health and a yardstick for comparing economies.

This somewhat complex economic number has become a political buzz topic in the state. California’s business stature appears lofty when its output is compared to other nations using GDP measured in U.S. dollars.

But currency is a wildcard in the ranking math. The U.S. dollar has been weak for the past year, which may help California’s global “rivals” on this scorecard when the IMF’s next update is released in April.

It’s a tight race for the world’s No. 4 economy. According to IMF data, just behind Japan and California is India, with an economy worth $4.125 trillion in 2025. Then there’s the United Kingdom at $3.96 trillion.

So, roughly $300 billion – a 7% gap – separates these three countries from California on this vanity scoreboard. It’s likely that India’s fast-growing economy, powered by the world’s largest population, will soon overtake the No. 4 ranking.