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flag California's economy surpasses Japan's, yet faces budget deficits and financial woes in major cities.

flag California has become the world's fourth-largest economy, surpassing Japan with a GDP of $4.1 trillion. flag Despite this, the state faces a structural budget deficit and financial struggles in major cities like Los Angeles and San Francisco due to overspending and mismanagement. flag Governor Gavin Newsom warns that President Trump's tariffs could worsen the situation, leading to higher costs and potential layoffs.

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