The total economic output of U.S. Latinos reached $ 2.7 trillion in 2019 and would be the seventh largest GDP in the world if U.S. Latinos were an independent country, according to a report released on Wednesday.
Why it matters: The report showed that US Latino purchasing power continues to grow and is fueled by US births rather than immigration.
According to the numbers: The detailed study by the Latino Donor Collaborative, a nonprofit that deals with Latino issues, read: presented at the L’attitude conference in San Diego. L’attitude seeks to connect venture capitalists with startups and print media for diversification.
- The study found that the gross domestic product of U.S. Latinos rose to $ 2.7 trillion in 2019, from $ 2.1 trillion in 2015 to $ 1.7 trillion in 2010.
- GDP growth for US Latinos from 2010 to 2019 outperformed Germany, the UK, and Japan.
- Latin American GDP growth averaged 5.63% over the past two years, twice as fast as the US economy as a whole.
The intrigue: The main industrial sector of US Latino GDP is education and health care with a total volume of 446 billion US dollars or 16.4% of US Latino GDP.
- In second place is professional and business services at $ 327 billion, or 12.0% of Latin American GDP.
- Finance and real estate account for $ 252 billion, or 9.3% of Latin American GDP.
- Total U.S. GDP in 2019 was $ 21.4 trillion.
What you say: “Despite less access to capital, Latino property overtakes non-Latino property,” said Matthew Fienup, chief economist at the Center for Economic Research for Forecasting.
Yes but: The poverty rate for U.S. Hispanics was 15.7% in 2019 – an all-time low, but still above the national average of 10.5%.
But, but, but: L’attitude chairman Sol Trujillo tells Axios that only a tiny percentage of venture capital investments go to Latino startups.
- “Latinos are starting small businesses very quickly, but their growth is limited by a lack of investment.”
Be Smart: The report is part of a lobbying effort by Latino organizations to convince corporations and media outlets that hiring more Latinos is beyond a moral obligation. It makes business sense.
Continue reading: Government Accountability Office suggests media for lack of Latinos
