Gross Domestic Product of Latinos in the United States: Fifth-largest economy in the world
The Gross Domestic Product of Latinos in the United States would represent the fifth-largest economy in the world, according to a study.
The Gross Domestic Product of Latinos in the United States totals $3.2 trillion, which means that if they were a country, Latinos residing in the United States would be the fifth-largest economy in the world.
The report, revealed in the “2023 U.S. Latino GDP Report,” was prepared by the non-profit organization Latino Donor Collaborative (LDC).
The economic contribution of Latinos in the United States accounted for 20.9% of the U.S. GDP between 2011 and 2021, according to the study.
The Gross Domestic Product of Latinos in the United States estimated by LDC surpasses that of countries such as France, the United Kingdom, and India.
In just one state, California, the Latino economy would rank 21st among the largest in the world, surpassing that of Switzerland.
This number is related to the increase in income among the Latino community, which is growing at an annual rate of 4.7%, compared to the 1.9% average for other racial groups, according to LDC.
The Gross Domestic Product of Latinos in the United States: Significant Recovery
This is due in part to the increase in the Latino population, which grew by 12.1 million people in 11 years, accounting for 52% of the total population growth in the United States.
The labor force participation rate of Latinos in the United States is 5.4% higher than that of non-Latinos.
This rate represents a significant recovery from the employment crisis brought about by the COVID-19 pandemic, during which the Latino community was one of the hardest hit. In fact, in April 2020, the unemployment rate among Hispanics soared to 18.1% after hovering around 4% before the pandemic, according to data from the U.S. Bureau of Labor Statistics.
The increase in the employed Latino population is largely due to the fact that most Latinos are under 25 years old, compared to the average age of 60 to 64 for other racial groups.
There are many factors that have led to the conclusion that the GDP of Latinos in the United States is robust.
“As older non-Latino workers retire, young Latinos enter and grow in the labor market, contributing to tax revenue and the economy,” the LDC study asserts.
The study also highlights the advancements of the Latino community in terms of education: the number of Latinos in the United States holding a bachelor’s degree or higher increased at an annual rate of 6.8%, compared to 2.8% for the rest of the racial groups.
The report, in its sixth edition in 2023, calculates GDP using the expenditure method, aggregating goods into categories such as consumption, residence, investment, imports, and exports.
