Sep 30, 2021 - Economy

Report: U.S. Latino GDP tied with France, greater than Italy

Presenters on stage at the L'attitude conference in San Diego

L'attitude conference in San Diego. Photo: Russell Contreras/Axios

The total economic output of U.S. Latinos reached $2.7 trillion in 2019 and would be tied for the seventh-largest GDP in the world if U.S. Latinos were an independent country, according to a report released Wednesday.

Why it matters: The report showed U.S. Latino buying power continues to grow and is driven by U.S. births, not immigration.

By the numbers: The detailed study by the Latino Donor Collaborative, a non-profit organization researching Latino issues, was unveiled at the L'attitude conference in San Diego. L'attitude seeks to connect venture capitalists with startups and pressure media to diversify.

  • The study found that the 2019 U.S. Latino gross domestic product of $2.7 trillion had spiked from $2.1 trillion in 2015 and $1.7 trillion in 2010.
  • The GDP growth from 2010 to 2019 for U.S Latinos outpaced Germany, the United Kingdom and Japan.
  • Over the past two years, the growth of Latino GDP averaged 5.63%, double the rate of the broader U.S. economy.

The intrigue: The U.S. Latino GDP’s top industry sector is education and health care, totaling $446 billion or 16.4% of U.S. Latino GDP.

  • Professional and business services come in second, with $327 billion or 12.0% of Latino GDP.
  • Finance and real estate make up $252 billion or 9.3% of Latino GDP.
  • The total U.S. GDP in 2019 was $21.4 trillion.

What they're saying: "Despite having less access to capital, Latino homeownership is outpacing non-Latino homeownership," Matthew Fienup, chief economist for Center for Economic Research for Forecasting, said.

Yes, but: The poverty rate for U.S. Hispanics in 2019 was 15.7% — a historic low but still above the national average of 10.5%.

But, but, but: L'attitude chair Sol Trujillo tells Axios only a tiny percentage of venture capital investment goes to Latino startups.

  • "Latinos are starting small businesses at a great rate but their growth is limited by a lack of investment."

Be smart: The report is part of an advocacy effort by Latino organizations to convince businesses and media companies that hiring more Latinos goes beyond a moral obligation. It makes business sense.

Further reading: Government Accountability Office hits media for lacking Latinos

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