U.S. Latino economy hits $4 trillion, surging ahead of national GDP
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The U.S. Latino economy hit $4 trillion in 2023, expanding at twice the pace of the rest of the country, according to the most recent data available.
Why it matters: Latinos' youth, population growth, educational gains and entrepreneurial drive are powering one of the world's largest economic forces — even as wealth gaps persist.
By the numbers: If U.S. Latinos were a country, their GDP (total value of goods and services produced) would rank fifth globally for the third year running, according to the Latino Donor Collaborative (LDC) report.
- California ($989 billion), Texas ($739 billion) and Florida ($396 billion) are the top state contributions, per the report.
- Between 2018 and 2023, Latinos in Texas accounted for 31.3% of the state's overall economic growth.
Between the lines: Latino GDP has grown at an average 4.4% annually — second-fastest among the world's 10 largest economies, trailing only China and on par with India.
- Latinos in manufacturing were the largest contributor in 2023, generating $547 billion — a 15.5% year-over-year jump. Real estate had the highest jump, surging 23.5% to $340 billion in 2023, up from $266 billion in 2021.
- "Latinos in the U.S. are not just participating in the economy; they are propelling it," LDC co-founder and chairperson Sol Trujillo said in a statement.
Zoom in: The National Association for Latino Community Asset Builders (NALCAB), a San Antonio-based Community Development Financial Institution (CDFI), helps build Latino wealth by expanding access to homeownership through housing development, buyer education, down payment aid, and lending support.
Between the lines: Even as Latinos make major economic inroads, many are still shut out of homeownership and lack access to important financial tools such as the CDFI Fund, NALCAB executive vice president and COO Levar Martin tells Axios. The fund is a federal program that channels billions to credit unions, banks, and nonprofits serving low-income communities.
- Latinos' gains could be threatened by steep cuts to the fund proposed by the Trump administration. All 11 CDFI programs remain legally protected and funded for now.
What they're saying: "The CDFI Fund has been very impactful. This brings financial services to communities that don't have access — losing this lifeline would ripple across the country and our economy," Martin tells Axios.