Come 2023, California could officially surpass Germany as the fourth largest economy in the world, according to a new analysis from Bloomberg.

Though official figures are due next year, some estimates indicate The Golden State may have already caught up with Germany. One forecast cited by Bloomberg estimates California is ahead by $72 billion.

If the estimates are accurate, California will rank fourth in the world behind the United States, China and Japan. It would be the latest jump since surpassing Brazil in 2014, France in 2015 and the United Kingdom in 2017.

Gov. Gavin Newsom attributed the state’s ascent to its “values and entrepreneurial spirit,” adding that the state will “continue doubling down on industries of the future, like renewables and clean energy.”

“While critics often say California’s best days are behind us, reality proves otherwise – our economic growth and job gains continue to fuel the nation’s economy,” Newsom said in a statement.

Bloomberg’s analysis says California’s “trajectory” to overtake Germany is most clear in the “growing divergence between its 379 companies with a market value of at least $1 billion and the 155 publicly-traded firms based in Germany meeting a similar benchmark.” Bloomberg found that California’s corporate revenues and market capitalization rose 147% and 117% over the last year, while Germany’s gains were only 41% and 34%.

The analysis also found that California’s top three industries – technology hardware, media and software – saw sales increase significantly in the past three years, resulting in a boost to market valuations.

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