Miami Beach, Florida, Sasson Cafe, Cuban flag, elderly people at the table.
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The latest report released by an economic think tank on Thursday showed that the U.S. Latino economy will grow by 13%, from US$3.2 trillion in 2021 to US$3.6 trillion in 2022 Latino Donor Partnership and Wells Fargo.
That would make the group the world’s fifth-largest economy – larger than the annual output of India, the UK, France and Canada.
Saul Trujillo, president of the Latino Donor Partnership, said in the report: “There is no doubt that the Latino economy in the United States is a powerful force, characterized by strong gross domestic product growth, substantial population growth, labor force High participation rates and improved educational attainment.
“This is not a diversity and inclusion issue; this is a critical business strategy,” Trujillo added.
The report is based on data from 2022, the most recent year for which public information is available. It includes data from the U.S. Census Bureau, Bureau of Economic Analysis, and Bureau of Labor Statistics, among others.
Looking at the world’s 10 largest economies from 2017 to 2022, Latin America will become the second-fastest growing economy, with an average annual real growth rate of 4.6%, second only to China’s 5.3%. The growth rate of U.S. Latino gross domestic product (GDP) is also 2.6 times faster than that of other U.S. economies.
Latino industrial strength remains stable in manufacturing, public administration, accommodation and food services, construction, and transportation.
By state, California again leads in Latino GDP in 2022. Here are the top five states by Latino GDP, according to the report:
- California: $935.2 billion
- Texas: $686.6 billion
- Florida: $347.8 billion
- New York: $268 billion
- Illinois: $125 billion
Antonio Munoz, owner of 911 Taco Bar, prepares grilled meat and chicken as prices and costs of meat have increased with recent inflation on February 1, 2024 in Las Vegas, Nevada. rise.
Patrick T. Fallon AFP | Getty Images
Latino wealth soars
The Latino economic boom has also brought about a wealth boom for this ethnic group.
Hispanic household wealth has tripled over the past decade, according to new data compiled by the Hispanic Wealth Project.
That’s two years ahead of the goal set by the nonprofit as Latinos lost two-thirds of their median household wealth in the aftermath of the Great Recession. By 2022, the median net worth of Latino households will reach $63,400, 3.17 times higher than in 2013 (adjusted for inflation).
HPW reports that rising homeownership rates, rising home prices and a surge in Hispanic-owned businesses have contributed to solid economic growth.
However, a significant gap remains when compared to non-Hispanic white households, whose median net worth in 2022 was $283,300.
“The Latino community in the United States is critical to the future of our country,” Trujillo said.
Latin America’s economy shows no signs of slowing down
LDC also made forecasts for the U.S. Hispanic economy through 2029.
Much of that is due to the group’s population growth rate, Trujillo said. “The growth of the U.S. Latino population is almost universal across the country.”
Latino economies are also growing faster than non-Latinx economies in states such as Colorado, Washington and Georgia. Between 2021 and 2022, the U.S. Latino population increased by 1.65%, while the non-Latino population increased by only 0.08%. This growth has resulted in a Hispanic population that is significantly younger than its peers, with a large portion of Latinos yet to enter the labor force.
As a result, the U.S. economy increasingly relies on Latino Americans to replenish the working-age population, Trujillo said. “A young Latino in the United States turns 18 every 30 seconds.”
“Taking advantage of the unique and powerful opportunities offered by the U.S. Latino market will benefit every American,” Trujillo said.
The report’s findings were manner conference to examine the state of Latino leadership, participation, and representation in corporate America and in the public, media, and entertainment sectors.
