The economy of the Latino community in the United States is larger than that of India and is very close to that of Germany. The GDP of Latinos living in the United States in 2022 was $3.68 trillion, an amount that has grown in recent years, even despite the pandemic emergency. In 2019, this figure was $2.75 trillion. These are the data included in the latest report on the Latino economy by the Economic Research Center at California Lutheran University and the Center for the Study of Latino Health and Culture at the University of California-Los Angeles (UCLA).
Just days before Hispanic Heritage Month begins, this report details that if they were a country, the GDP of Latinos would be the fifth highest in the world and for the third consecutive year would be above economic powers such as the United Kingdom or Brazil.
The report points out that even with the hard blow suffered by this population due to Covid, the economic contribution of Latinos has been key to the United States. “Despite being only 19.2% of the US population, Latinos are responsible for 41.4% of real GDP growth since 2019,” the report explains. In addition, progress has been at a rate that the report describes as “extraordinary.” Between 2010 and 2022, the annual growth of real GDP for Latinos was 4.2% compared to 1.7% for the economy as a whole.
“Covid punished us,” says one of the authors of this report, Dr. David Hayes-Bautista, “but it didn’t stop us.” Hayes-Bautista says this report changes the narrative of this community among those who only see social problems in it.
The joint study by these two universities indicates that one of the keys is the growth in consumption in this community, which has seen its potential unfold thanks to the increase in population, its youth and the high ratios of business entrepreneurs who are growing despite the disadvantages. The report also indicates that one of the driving forces of this community, partly boosted by the improvement in the educational level, is the increase in income, which since 2010 has grown 2.7 times faster than that of the rest of the population.
The latest Census figures show how these incomes have grown over the years, but also that after the pandemic, and particularly in 2023, growth was behind the pace recorded by the rest of the communities. In addition, incomes are still below those of the average population.
Hayes-Bautista explains that the recovery in wages last year among non-Hispanic whites is due to the fact that many left the workforce during the pandemic, something that Latinos did not do, and when they returned, their median income increased to a similar extent as their temporary departure lowered it.
The report’s author acknowledges that disparities persist, but the reality of these figures is that they are not a burden. The report Hayes-Bautista worked on also recalls the high growth of the Latino workforce, that is, those who work and actively seek employment, which is at historically high levels.
Another study prepared for the Latino Donor Collaborative by the WP Carey School of Business at the University of Arizona contains the same conclusions with data from 2022 and points out that in states such as California, Texas and Florida, the Latino economy is much more buoyant than that of other demographics. But the drive of the new generations of Latinos also reaches other states such as Georgia or Washington, where an “impressive” expansion is seen.
Dr. Hayes-Bautista tells this newspaper that the evidence is that we must invest in Latinos, “not for charity, not even for social justice, but for economic reasons. When you see the contributions to the GDP, you see the value.” This is not to diminish the merits of social justice on the part of someone who participated in the Chicano protests that began in 1968. With a certain sense of humor, Hayes-Bautista calls himself “an old Chicano” before explaining that when “we ask for justice, they don’t listen to us. Affirmative action is not allowed now.” [la anuló recientemente el Tribunal Supremo] But if one wants to grow the country’s GDP, one must seek out Latinos instead of rejecting them.”
The University of Arizona study also insists that “investing in Latino talent and businesses is essential for the future of the country’s economy.” And they offer an estimate. If until now the Latin economy is below that of Germany, in 2027 it is expected to overtake that of this nation.
