San Diego Latinos drive economic growth despite wealth gaps
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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 available data.
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 in San Diego and across the country.
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.
- Latinos in California accounted for 32.3% of the state's overall economic growth between 2018 and 2023.
Between the lines: Latino GDP has grown at an average of 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 saw the highest increase, 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: Latinos make up more than one-third of residents, and about 13% of businesses in San Diego County, from restaurants to tech startups, according to the San Diego Foundation.
- But as Latino entrepreneurs launch and scale businesses locally, their growth is limited by language barriers and difficulty accessing loans and financial support, the 2024 State of San Diego Latinos Report found.
- The foundation's El Camino Fund, created in 2023, provides grants to local nonprofits rooted in the Latino community that are addressing those challenges.
- Some of those grantees include the Sherman Heights Community Center, Accessity and Logan Heights Community Development Corporation, which provide technical assistance, microloans and entrepreneurship training programs to help build wealth.
State of play: The California Legislature recently passed a bill, authored by Sen. Steve Padilla (D-San Diego), to create a California Latino Commission aimed at addressing the inequities faced by the Latino community in housing, education, economic mobility, labor and health care.
- Nationally, Latinos' gains could be threatened by the Trump administration's proposed cuts to the Community Development Financial Institution, a federal program that channels billions to credit unions, banks, and nonprofits serving low-income communities.