Saratoga, California — The governor's office said Friday that a new review of U.S. Bureau of Economic Analysis data shows California's economy expanded at a 3.7% annualized rate in the first quarter of 2026, which the office described as the state's strongest quarterly growth ranking since 2013 and among the fastest rates in the country.
By comparison, the analysis put first-quarter growth at 0.9% for Texas and 1.6% for Florida, according to the July 24 announcement. The office said California's first-quarter output reached an annualized $4.4 trillion, and that the state's annual gross domestic product stood at $4.25 trillion in 2025, keeping it the world's fourth-largest economy.
The announcement said California added about 131,500 jobs over the prior year during the first quarter, which it characterized as the largest gain of any state, and credited the state with roughly 14% of total U.S. economic output. Those figures reflect the administration's own reading of the federal data; quarterly state growth rates are routinely revised.
Gov. Gavin Newsom, in the announcement, attributed the results to state spending choices, saying California grows faster "because we choose to invest in innovation, talent, entrepreneurship, and working people." The framing of the release, which contrasted California with Texas and Florida, comes amid a long-running political rivalry between the states' leaders; officials in those states have argued their lower-tax models better serve residents and businesses.