The U.S. Latino economic output reaches $3.6 trillion according to a new report
The U.S. Latino economy has experienced a significant growth of 13%, expanding from $3.2 trillion in 2021 to $3.6 trillion in 2022, as reported by the Latino Donor Collaborative and Wells Fargo. This places the Latino economy as the fifth-largest globally, surpassing countries such as India, the United Kingdom, France, and Canada. The report highlights the robust GDP growth, population increase, high workforce participation, and educational achievements within the Latino community, emphasizing the importance of recognizing this economic force as a critical business strategy.
Based on data from 2022, Latinos have been the second fastest-growing economy worldwide between 2017 and 2022, with a 4.6% annual average real growth rate, trailing only behind China. The Latino GDP growth rate is also 2.6 times faster than the rest of the U.S. economy, with strength seen in industries such as manufacturing, public administration, accommodation and food services, construction, and transportation. California led the states in Latino GDP in 2022, followed by Texas, Florida, New York, and Illinois.
The Latino economic boom has led to a surge in wealth within the community, with Hispanic household wealth tripling over the past decade. The median net worth of Hispanic households reached $63,400 in 2022, a substantial increase from 2013 when adjusted for Inflation. Factors contributing to this growth include rising homeownership rates, increasing home prices, and a rise in Hispanic-owned businesses, although a wealth gap still exists when compared to non-Hispanic white households.
Looking ahead, the LDC forecast predicts that the U.S. Latino economy will continue to expand, surpassing Japan’s economic output by 2024 and Germany’s by 2027. This growth is driven by the population growth rate of U.S. Latinos, which is widespread across the country. The report emphasizes the importance of leveraging the opportunities presented by the U.S. Latino market, as the community plays a crucial role in replenishing the nation’s working-age population. The findings were presented during the L’Attitude conference, which examines Latino leadership and representation in various sectors of American society.
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Lucas Bennett, completed his Finance degree at Bocconi University in Italy in 2018. He is highly skilled in corporate finance and risk management, beginning his career at a hedge fund in Milan. Lucas expertise extends to consulting for leading European firms, particularly within the energy markets sector. His analytical skills and strategic mindset have made him a sought-after consultant, and he continues to explore new opportunities within the financial services industry across Europe.