A recent study reveals that the U.S. Latino economic output has reached $3.6 trillion.

• In 2022, the U.S. Latino economy expanded to $3.6 trillion from $3.2 trillion the previous year, as stated in a recent study by the Latino Donor Collaborative in conjunction with Wells Fargo.
• The study found that if Latinos were an independent country, their GDP would rank fifth in the world and be the second-fastest-growing economy.
• While the non-Latino population grew by a small percentage, the U.S. Latino population experienced a significant increase of 1.65%. A significant portion of this population consists of young individuals who have not yet entered the workforce.

In 2022, the U.S. Latino economy expanded by 13%, from $3.2 trillion to $3.6 trillion, as stated in a report released on Thursday by the Latino Donor Collaborative and Wells Fargo.

The cohort would become the fifth-largest economy in the world, surpassing the annual output of India, the United Kingdom, France, and Canada.

The U.S. Latino economy is a powerful force, with strong GDP growth, significant population expansion, high workforce participation, and increased educational achievements, according to Sol Trujillo, chairman of the Latino Donor Collaborative, as stated in the report.

Trujillo stated that this issue is not about diversity and inclusion but rather a crucial business strategy.

The report utilizes information from various sources, including the U.S. Census Bureau, the Bureau of Economic Analysis, and the Bureau of Labor Statistics, for the year 2022, which is the most recent publicly available data.

Between 2017 and 2022, the Latino economy would be the second fastest-growing among the world's 10 largest economies, with a 4.6% annual average real growth rate, surpassed only by China's 5.3%. Additionally, the growth rate of the U.S. Latino GDP is 2.6 times faster than the rest of the U.S. economy.

The manufacturing, public administration, accommodation and food services, construction, and transportation industries maintained their strength for Latinos.

In 2022, California topped the list of states with the highest Latino GDP, according to a report.

• California: $935.2 billion
• Texas: $686.6 billion
• Florida: $347.8 billion
• New York: $268 billion
• Illinois: $125 billion

Latino wealth soars

The wealth boom experienced by the Latino group can be attributed to the economic boom in the Latino community.

Over the past ten years, the wealth of Hispanic households has more than doubled, as per recent research by the Hispanic Wealth Project.

In 2013, the median net worth of Hispanic households was $20,600, which was 3.17 times lower than in 2022, when it reached $63,400.

Steady growth has been observed due to an increase in homeownership rates, rising home prices, and a surge in Hispanic-owned businesses, according to the HPW report.

Although the median net worth of Hispanic households was $192,160 in 2022, it was significantly lower than that of non-Hispanic white households, which had a median net worth of $283,300.

Trujillo stated that the Latino cohort is crucial to the country's future.

Latino economy shows no sign of slowing

The LDC predicted that the U.S. Latino economy will surpass Japan's and Germany's economic output by 2024 and 2027, respectively, based on national GDP forecasts from the International Monetary Fund.

Nearly ubiquitous across the country, the U.S. Latino population growth is a significant factor, according to Trujillo.

In states such as Colorado, Washington, and Georgia, the Latino population is experiencing faster economic growth compared to non-Latinos. From 2021 to 2022, the U.S. Latino population grew by 1.65%, while the non-Latino population grew by only 0.08%. This growth has resulted in the Latino population being significantly younger than its peers, with a large share of Latinos who have yet to enter the labor market.

Every thirty seconds, a young Latino in the U.S. turns 18, which is why Trujillo stated that the U.S. economy is increasingly dependent on U.S. Latinos to replenish its working-age population.

Utilizing the distinctive and potent prospects within the U.S. Latino market will advantage every citizen, as stated by Trujillo.

The L'Attitude conference, which focuses on Latino leadership, participation, and representation in various sectors, released the report's findings.