California’s economy larger than those of Texas and Florida and growing rapidly

LOS ANGELES:- For years, politicians in Texas and Florida have built their political images by criticizing California. However, when it comes to economic performance, the results tell a different story; this confirms what we have known for years—California’s economy is in a league of its own.

A new analysis based on data from the U.S. Bureau of Economic Analysis shows that California has achieved one of the country’s best quarterly growth results. By significantly outpacing Texas and Florida, it has further solidified its position as the world’s fourth-largest economy and the economic engine of the United States.

In the first quarter of 2026, California’s economy grew at an annual rate of 3.7 percent—the best quarterly growth rate since 2013 and one of the fastest in the country. During the same period, Texas’s economy grew by only 0.9 percent and Florida’s by 1.6 percent.

Governor Gavin Newsom says, “For years, we have heard the same narrative—that California’s economic model doesn’t work and that Texas or Florida represent the future. But the facts show otherwise. California is the world’s fourth-largest economy and we are moving forward rapidly, because we have chosen to invest in innovation, talent, entrepreneurship, and the working class. While Republican-led states are asking working families to shoulder a heavier tax burden, California is seeking ways to reduce family expenses and provide greater support for everyone to achieve success.”

States competing with California prefer to portray themselves as successful and low-tax, but for millions of working Americans, the reality is quite different. In 16 states—including Texas and Florida—the lowest-income residents pay a larger share of their total income in state and local taxes than California’s wealthiest 1%.

A Leading Global Economy

Since Governor Newsom took office, California’s annual Gross Domestic Product (GDP) has grown by more than $1.18 trillion, reaching $4.25 trillion in 2025. Following annual GDP growth of over $200 billion in each of the preceding two years, economic output reached an annualized rate of $4.4 trillion in the first quarter of 2026.

As the world’s fourth-largest economy, California leads the nation in key areas—such as the establishment of new businesses, attracting venture capital, technological innovation, the expansion of advanced manufacturing, the growth of high-tech industries, and overall output compared to any other state. In fact, the ‘Golden State’ ranks first in starting new businesses, manufacturing, venture capital investment, high-tech business, and agriculture.

California has more businesses operating than Texas or Florida and remains the ‘start-up’ capital of the U.S.—where over 4.3 million small businesses provide employment to 7.6 million Californians.