Economy of California

The economy of the State of California is the largest in the United States, with a $4.103 trillion gross state product (GSP) as of 2024. It is the largest sub-national economy in the world. If California was an independent nation, it would rank as the fourth largest economy in the world in nominal terms, behind Germany and ahead of Japan. Additionally, California's Silicon Valley is home to some of the world's most valuable technology companies, including Apple, Alphabet, and Nvidia. In total, 78 of the Fortune 100 companies and 337 of the Fortune 500 companies are headquartered in California. As of 2024, California is home to the highest number of Fortune 500 companies of any U.S. state.

As both the most populous US state and one of the most climatologically diverse states, the economy of California is varied, with many sizable sectors. The most dominant of these sectors include finance, business services, government and manufacturing. Much of the economic activity is concentrated in the coastal cities, especially Los Angeles, which has a relative focus on media—most notably Hollywood—and the San Francisco Bay Area, which predominantly concentrates on technology. Both cities, along with other major ports such as San Diego, also act as significant trade hubs to and from the United States. Furthermore, California's agriculture industry has the highest output of any U.S. state, with its Central Valley being one of the most productive agricultural regions on Earth, growing over half the country's fruits, vegetables, and nuts. More recently, droughts in California are affecting California business and industry in addition to agriculture.