U.S. Latinos' economic output closing in on Germany
The total economic output of U.S. Latinos reached $3.2 trillion in 2021, inching closer to Germany's and staying ahead of India, according to a report being released on Wednesday.
Why it matters: The report shows U.S. Latino buying power and economic output grew by more than 14% despite the pandemic's disproportionate impact on Latino communities.
- The Latino GDP stayed ahead of those of the United Kingdom, India and France, even though those economies grew.
- Latinos' total economic output was $2.8 trillion in 2020.
By the numbers: From 2011 to 2021, the U.S. Latino economy was the third-fastest growing among major economies, trailing only China (7.7%) and India (6.2%).
- During that same period, U.S. Latino income grew at an annualized rate of 4.7% compared to 1.9% for non-Latinos.
- Purchases of goods and services made "by and on behalf of Latinos" grew at 4% compared to 1.9% for non-Latinos.
Zoom in: Latinos significantly bolstered the U.S. economy through population growth, a high degree of workforce participation and increased productivity linked to educational attainment.
- It was conducted in partnership with Wells Fargo and Arizona State University.
The intrigue: This year's annual report for the first time broke down the Latino economy across all states.
- Significant Latino economies exist in California, Texas and Florida, amounting to $682 billion, $465 billion, and $240 billion respectively.
- The California Latino economy alone would rank as the 21st largest in the world, nestled between Poland and Switzerland, the report said.
Yes, but: While the report focused on the overall strength of the U.S. Latino economy, it did not address the massive economic inequalities still facing Hispanics nationwide.
- Roughly 17% of Latinos live below the U.S. poverty line. The national rate is 11.6%
- 41.9% of people in Puerto Rico live below poverty, and 27.6% of Latinos in Alabama also do, according to an Axios analysis.
What they're saying: Poverty is keeping the Latino GDP from growing even more, José A. Jurado, a research economist at Seidman Institute, Arizona State University, and co-author of the report, told Axios.
- The Latino cohort still has a lot of catching up to in terms of education," said Jurado, adding that the lack of access to quality education is one of the major drivers of poverty.
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