The U.S. Latino economy experienced a 13% growth from $3.2 trillion in 2021 to $3.6 trillion in 2022, as per a recent report by the Latino Donor Collaborative and Wells Fargo. This growth positions the Latino economy as the fifth-largest globally, surpassing the economies of India, the United Kingdom, France, and Canada.
The report highlights the robust nature of the U.S. Latino economy, citing strong GDP growth, population expansion, high workforce participation, and increased educational achievements. Sol Trujillo, Chairman of the Latino Donor Collaborative, emphasized the strategic importance of recognizing the Latino economy as a critical business strategy rather than just a matter of diversity and inclusion.
Data from 2022, sourced from the U.S. Census Bureau, the Bureau of Economic Analysis, and the Bureau of Labor Statistics, among others, formed the basis of the report. The study reveals that Latinos have been the second fastest-growing economy globally between 2017 and 2022, with a 4.6% annual average real growth rate, trailing only behind China at 5.3%. Additionally, the U.S. Latino GDP growth rate is 2.6 times faster than the rest of the U.S. economy.
The report also notes the steady industry strength of Latinos in sectors such as manufacturing, public administration, accommodation and food services, construction, and transportation. California led the states in Latino GDP in 2022, as per the report’s findings.
The economic prosperity of Latinos has translated into a wealth boom for the community. Hispanic household wealth has tripled over the past decade, outpacing a goal set by the Hispanic Wealth Project. By 2022, the median net worth of Hispanic households reached $63,400, marking a significant increase from 2013 when adjusted for inflation.
Despite these gains, a wealth gap persists when comparing Hispanic households to non-Hispanic white households. The report underscores the essential role of the U.S. Latino cohort in the country’s future economic landscape, with projections indicating that the Latino economy will surpass Japan’s by 2024 and Germany’s by 2027.
The report was unveiled during the L’Attitude conference, which examines Latino leadership, participation, and representation across various sectors in the U.S., including corporate America, public institutions, media, and entertainment.
