SACRAMENTO:-  California’s economy continues to lead the nation and outperform global competitors, according to a new report from the Public Policy Institute of California (PPIC). Highlighting the state’s long-term growth, resilience, and innovation-driven economy, this report demonstrates the Golden State’s dominance in various fields.

The report found California’s gross domestic product reached $4.3 trillion in 2025, representing 14% of the entire U.S. economy. Over the past 25 years, California’s economy has grown 90%, significantly outpacing national growth of 69%.

Governor Gavin Newsom,  “California isn’t just keeping pace with the global economy — we are setting it. Our state continues to be the nation’s engine for innovation, entrepreneurship, job creation and economic growth. These findings reinforce what we already know: California succeeds because we invest in people, support businesses and workers, and continue building an economy that creates opportunity for all.”

The report also found that California has added nearly 3 million jobs since 2005, while the number of businesses with paid employees has increased by 52% — far outpacing population growth.  On a per capita basis, California’s economy outperformed every other large state and the nation over the long term.

California’s economy is dominating

California continues to lead the nation economically, outpacing all states and every developed nation, according to a recent Bloomberg analysis. In 2025, California  continued a 16-year growth streak, growing faster than the second-largest state, Texas.

The state has more businesses than any other state, including Florida and Texas,  supporting strong job creation and expanded economic opportunity for workers across the state. California is also home to more than 4.3 million small businesses, representing 99.8 percent of all businesses in the state and employing 7.6 million people.

California continues to lead the nation as the #1 state across key areas of economic strength and innovation, including:

·         Fortune 500 companies

·         New business starts

·         Manufacturing

·        Venture capital funding

·         High-tech business

·         Agriculture