The Latino Donor Collaborative (LDC), in collaboration with Wells Fargo, has released a report highlighting the significant economic contributions of U.S. Latinos. If considered a standalone nation, U.S. Latinos would rank as the fifth largest GDP globally, surpassing major economies such as India and Russia. The report projects that by 2027, the U.S. Latino economy will exceed Germany’s GDP.
In California alone, Hispanic-owned businesses number over 815,000 and have created more than 500,000 jobs, contributing over $100 billion annually to the state’s economy, according to the California Hispanic Chambers of Commerce (CAHCC).
As of 2022, the U.S. Latino GDP stood at $3.6 trillion. Between 2017 and 2022, it was the second fastest-growing among the world’s top ten economies with an average annual growth rate of 4.6%, trailing only China at 5.3%. The LDC expects this trend to continue due to factors like population growth and increased business formation.
The period between 2021 and 2022 saw substantial growth in the U.S. Latino economy: GDP rose by $321 billion to reach $3.6 trillion; Gross Domestic Income (GDI) grew by $316 billion to $2.83 trillion; and Latino Purchasing Power (LPP) increased by $338 billion to total $3.78 trillion.
Manufacturing emerged as a key driver in 2022 with a remarkable year-over-year increase of 48.4% to $457.4 billion, accounting for 17% of national manufacturing output. Retail trade also saw a significant rise of 14.1% to reach $270.3 billion, while construction reported a growth of 9.3% amounting to $250.3 billion.
Latinos represent about 19% of the U.S workforce and exhibit the highest work participation rate among major demographic groups in the country. From 2021 to 2022, while other sectors lost working-age individuals, Latinos added approximately 1.4 million workers.
Entrepreneurship among Latinos is on an upward trajectory as well; Stanford University’s State of Latino Entrepreneurship research reports that from 2007 to 2022, Latino-owned businesses expanded by nearly 57%. Currently owning close to five million businesses nationwide, these enterprises generate more than $800 billion annually.
In terms of industry presence in 2021: “U.S Latinos owned “10% of all accommodation and food services businesses nationally,” “6% of all health care and social assistance firms,” “11% of administrative and other services firms,” and “12.2% of all construction firms,” according to LDC data.
