Nearly 63 million Latinos call the U.S. their home, making up just under 20% of the total population, according to 2023 figures from Pew Research Center. And, the fiscal impacts of this group are impossible to ignore. According to one recent study, the total economic output of Latinos hit a record high in 2023, helped lift us out of the devastation of the pandemic, and ranks higher than a number of major economies around the world.
“Latinos have once again powered major growth for the U.S. economy,” researchers from the University of California, Los Angeles and California Lutheran University said in their annual U.S. Latino GDP report. “The annual U.S. Latino GDP report found that the total economic output, or gross domestic product, of Latinos in the United States hit a record high, reaching $4.1 trillion in 2023, up from $3.7 trillion in 2022.”
It’s something worth remembering not just during the Hispanic Heritage Month observance, but every day. Not only have Latinos made significant scientific, medical, and cultural contributions from our nation’s founding (and before!), they are a fiscal powerhouse that has helped sustain our economic standing here and around the world.
The numbers don’t lie. In fact, if all U.S. Latinos were an independent country, it would have one of the top GDPs in the world, the researchers said. “While impressive for its size, the U.S. Latino GDP is truly remarkable for its rapid growth,” the study noted.
“Among the ten largest GDPs, the U.S. Latino GDP was the third fastest growing from 2010 to 2023. Over that period, real Latino GDP increased 2.7 times faster than Non-Latino. In 2023, Latino consumption stood at $2.7 trillion. Latinos in the U.S. represent a consumption market 20 percent larger than the entire economy of Italy and 24 percent larger than Brazil. From 2010 to 2023, Latino real consumption grew 2.6 times faster than Non-Latino, driven by rapid gains in Latino income. Over the same period, Latino real incomes grew 2.9 times faster.”
And while Latino communities were particularly impacted by the pandemic – this demographic is overrepresented among essential workers, which increased their exposure to the virus – they have become “an important source of resilience,” the study said. “When COVID-19 struck, observing the differential impacts to Latino health, many analysts predicted that earlier Latino economic gains would be erased. Despite being hit harder by COVID-19, the Latino GDP has roared back.”
“Juxtaposing data on the extraordinary growth of Latino GDP from 2019 to 2023 with data on health impacts for Latinos is an important exercise,” the study said. “It illustrates the extraordinary sacrifices made by Latinos during the pandemic.”
Previous research has found that Latino communities are natural-born entrepreneurs and have in fact opened small businesses at a faster pace than white Americans. Latina entrepreneurs in particular have excelled as business people, said a 2023 “State of Latino Entrepreneurship” study released by the Stanford Latino Entrepreneurship Initiative.
“There are 1.3 million female-owned employer businesses in the United States, representing 22% of all American-based employer firms,” the study said. “Women make up a larger proportion of Latino/an entrepreneurs than White entrepreneurs. Latinas own 104,000 employer businesses representing 27% of all employer firms owned by [Latina-owned businesses], whereas White women are owners of 21% of all [white-owned businesses] in the country.”
Happy Hispanic Heritage Month! At WBEC-Pacific, we proudly celebrate the vibrant cultures, rich histories, and incredible contributions of Hispanic and Latina women entrepreneurs. Your voices, businesses, and innovations continue to shape our communities.#latinaowned #hispanicheritagemonth #wbe
But the research also showed that while Latinas are leading in starting businesses, they “face unique challenges and opportunities,”such as “lack of access to financing from local and national banks, and substantive gaps in government contracts.” More support in overcoming these challenges would not only be a boon to businesses, but to the surrounding communities that benefit from an economic boost. It’s a reminder that when our communities are stronger, our nation is stronger – and Latinos play an important role in that.
The economic research “highlights just how vital and uplifting Latino strength and resilience are for the nation,” as UCLA and Cal Lutheran researchers said. “Hard work, self-sufficiency, optimism, perseverance – these are the characteristics that underly the strength and resilience of U.S. Latinos. These same characteristics will continue to drive growth in the overall United States economy for years to come.”
