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California overtakes Japan to become world’s 4th-largest economy - here’s what changed

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California economy 2026: California has surged to become the world's fourth-largest economy, surpassing Japan with a GDP exceeding $4 trillion. Driven by a booming tech sector, robust venture capital, and a skilled workforce, the state's economic output has grown 40% since 2019. Despite challenges, California's innovation and corporate activity continue to fuel its remarkable rise.



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