California ranked as the world's ninth largest economy last year, behind Italy and just ahead of Russia.
A state analysis shows California's gross domestic product totalled $1.96 trillion last year, behind Italy but ahead of Russia and India.
Two years ago, the state was No. 8 in the world but was overcome by Brazil.
Steve Levy, an economic consultant in Palo Alto, said the state is growing, but fast-developing countries like Brazil are growing more quickly. Before long, the state will probably fall behind Russia and India, he said.
"It's not a failing on California" to be surpassed by those countries, said Levy, who runs the Center for Continuing Study of the California Economy.
By itself, the Los Angeles area was the 16th largest economy in the world, and the Bay Area was 20th, he said.