Report: U.S. Latino GDP tied with France, greater than Italy
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%.
- New Mexico, the state with the highest percentage of Hispanic residents in the nation, remains among the poorest in the U.S.
- Areas of South Texas and Central California that a majority of Mexican American residents also struggle with high rates of poverty.
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