Voz media US Voz.us
Apple store Voz-media Play store Voz Media

Hispanics are 'a major driver of economic growth in the United States'

The Hispanic community's GDP is the third fastest growing among the world's ten largest GDPs. In a decade, it surpassed the nation's overall economic growth.

Dinero, hispanos

Voz Media (Pexels)

Published by
Verónica Silveri Pazos

The Gross Domestic Product (GDP) of the Hispanic community in the U.S. experienced overwhelming growth from 2010-2021, reaching third place worldwide due to its rapid increase and even surpassing that of the nation's general economy.

A new study by the Center for the Study of Latino Health and Culture and the Center for Economic Research & Forecasting (CERF) revealed that the GDP of the U.S. Hispanic community "grew nearly 2.5 times faster than Non-Latino GDP":

Among the ten largest GDPs, the U.S. Latino GDP was the third fastest growing from 2010 to 2021, while the broader U.S. economy ranked fifth. Over that entire period, the compound annual growth of U.S. Latino GDP averaged 3.5 percent, compared to  only 1.6 percent for Non-Latinos. In other words, for more than a decade, Latino GDP grew nearly 2.5 times faster than Non-Latino GDP.

2023 USLatinoGDP Report by Veronica Silveri on Scribd

The report obtained its results by "first making Latino-specific calculations of major GDP components decomposed across more than 70 expenditure categories. This is a detailed, bottom-up construction of the total economic impact of Latinos."

The Hispanic economy in constant growth

The economic contribution of the more than 63 million Hispanics residing in the country reached $3.2 trillion in 2021. This figure is an increase from the $2.8 trillion recorded in 2020 and the $2.1 trillion in 2015.

The economic growth of the Hispanic community derives "from Latinos' rapid gains in educational attainment and strong labor force participation." According to the report, "the number of people earning a bachelor's degree grew three times faster for Latinos than Non-Latinos."

The main drivers of the Latino GDP in the country are the financial and real estate sectors ($491.9 billion), business services ($443 billion), the public sector ($392.6 billion), education and healthcare ($260.2 billion), and the construction industry ($244.8 billion).

According to the report: "These patterns underscore the fact that Latinos are a major driver of economic growth in the United States."

76% of the Hispanic population lives in just 10 states

Hispanics make up more than 19% of the U.S. population, according to the Census Bureau. Forecasts suggest that, by 2060, they will be equivalent to 27.5% of the population. From 2021 to 2022, the Hispanic population in the country grew by 1 million, bringing the total to 63,664,346.

The states with the highest percentage of Hispanic residents in January 2023, according to World Population Review, are New Mexico (49.2%), Texas (39.4%), California (39.1%) and Arizona (31.5%). In Texas, in fact, they become the predominant demographic group, ahead of even white Texans (11.9 million). New York (3,867,076) was the only state in which the number of Latino residents decreased (-0.7%, -27,522). South Dakota had the most notable growth, increasing 6.8%, or 2,835 residents.

The report points out that, were not for Hispanics in states like California, the "labor force would have declined" considerably.

tracking