According to a new report, the Latino economic production in the United States has increased to $3.2 trillion.
According to a recent analysis by the Latino Donor Collaborative in collaboration with Wells Fargo, the U.S. Latino economy will reach $3.2 trillion in 2021, up from $2.8 trillion the previous year.
According to a report released Wednesday by LDC, a nonprofit, nonpartisan group focused on reshaping perceptions of U.S. Latinos through data and economic research, the Latino economy in the United States has grown two and a half times faster than the non-Latino equivalent, surpassing the gross domestic product of the United Kingdom, India, France, and Italy.
According to the report, if Latinos were separate countries, their GDP would rank sixth in the world.
“We have a massive economy that is currently under-invested and under-engaged,” said Sol Trujillo, head of the Latino Donor Collaborative.
Accommodation and food services, construction, administrative assistance, waste management, and transportation continue to be strong industries for Latinos.
While the Latino population’s growth remained geographically diverse in the United States, the group generated notable development in the states of California, Texas, and Florida, totaling $682 billion, $465 billion, and $240 billion in economic effect, respectively.
This is attributed in great part to the Latino community’s high demographic share, labor force engagement, and total productivity in those states.
“I would say if you look at the charts now that we have in our study, 48 out of the 50 states’ growth is tied to this [Latino] cohort,” said Trujillo.
According to LDC’s research, the Latino economy in California would be the world’s 21st biggest, ranking between Poland and Switzerland.
South Dakota, North Dakota, and New Hampshire have had a remarkable spike in Latino developing markets, with the greatest GDP growth rates since 2011. According to LDC, the economic effect of Latinos in South Dakota will grow at an annual rate of 11.8% in 2021, significantly exceeding its neighbor.
“Businesses operating in these areas must stay ahead of these substantial changes to ensure they remain relevant,” the study by the LDC stated. “And be able to meet the needs of their evolving customer base.”
The survey also discovered that Latinos’ salaries and salary incomes climbed faster than non-Latinos’ over the preceding decade, topping $1.67 trillion in 2021, at an annualized rate of 4.7% compared to 1.9% for non-Latinos.
Despite this quick increase, the country still has a significant pay disparity, with the average Latino worker receiving 80 cents for every $1 earned by white non-Hispanic employees.
Latino purchasing power in the United States was high, reaching $3.4 trillion in 2021. According to the survey, the collective buying power of Latinos in the United States expanded between 2.1 and 2.4 times faster than that of non-Latino peers.
“In the rest of this century, this cohort is only going to get bigger and bigger,” Trujillo stated. “Think about it, those who want to get in early.” Consider the potential capital and fund arrangements.”
The findings were announced in conjunction with the L’Attitude conference, which examined the condition of Latino leadership, engagement, and representation in corporate America, as well as in government, media, and entertainment.
The study is based on information from 2021, which is the most recent year for which data is publicly accessible. It incorporates information from the United States Census Bureau, the Bureau of Economic Analysis, and the Bureau of Labor Statistics, among other sources.