The economic impact of the Latino community in the United States is on the rise, equivalent to the fifth world economy

According to a recent report commissioned by the Latino Donor Collaborative (LDC), in 2020, Latinos generated a staggering $2.8 trillion in GDP, putting them on the same economic footing as renowned countries like the United Kingdom and India. This economic growth is supported by a rapid population growth, greater higher education among Latinos and their outstanding entrepreneurial capacity. As this community continues to expand and consolidate its presence in the U.S. economy, its impact promises to be even more significant in the future. 

 
The Latino community in the United States is exerting an unprecedented economic impact on the nation according to a report by the Latino Donor Collaborative (LDC). The study, conducted by experts from two Californian universities, revealed that the Gross Domestic Product (GDP) generated by Latinos in 2020 reached a staggering $2.8 trillion. This figure puts the Latino community in the United States in the same economic league as countries such as the United Kingdom, India and France. The report highlights that the Latino population in the United States is experiencing rapid population growth. In the last decade, the Latino population in the country increased by 19%, reaching 62.5 million people in 2020. However, according to data provided by Statista, the Hispanic population continues to grow and currently amounts to 62.65 million people of Hispanic descent. This growth trend, along with an increase in higher education among Latinos, is contributing to their growing economic power. 

"Academic growth is five percentage points in the last decade, a very high growth," explains Lucy Perez, a partner at global strategic consultancy McKinsey & Company. This increased access to higher education is allowing Latinos to access higher-paying jobs, which in turn drives economic growth. 

Another aspect highlighted in the report is the entrepreneurial capacity of the Latino community. Currently, there are 4.7 million Latino-owned businesses in the United States, generating more than $800 billion in revenue. However, it is noted that limited access to bank credit remains a major challenge for Latino entrepreneurs. It also highlights that, as consumers, Latinos represent a $1.8 trillion market in the United States. Despite their economic clout, there is a significant wage gap compared to non-Latino white workers, suggesting even greater potential for economic growth if this gap were closed. 

In short, the Latino community in the United States is playing a fundamental role in the nation's economy and its economic impact is increasingly significant. With steady population growth, increased access to higher education, and a growing presence in the business sector, Latinos are cementing their position as a major economic force in the United States. 

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