The economic impact of the U.S. Latino community has surged to $3.6 trillion in 2022, up from $3.2 trillion the previous year, according to a new report by the Latino Donor Collaborative in partnership with Wells Fargo. This remarkable growth positions the U.S. Latino economy as the fifth-largest in the world if considered as an independent country, and highlights its rapid expansion as the second-fastest-growing economy globally.

Latino population growth outpaced that of non-Latinos, increasing by 1.65% compared to just 0.08% for non-Latinos. This demographic shift is bolstered by a younger Latino population that has yet to fully enter the labor market.

The report, which draws on data from the U.S. Census Bureau, the Bureau of Economic Analysis, and the Bureau of Labor Statistics, among other sources, indicates that the U.S. Latino economy grew by 13% from 2021 to 2022. This growth rate is significantly higher than the broader U.S. economy, with the Latino GDP expanding at 2.6 times the rate of the overall U.S. GDP.

Between 2017 and 2022, the U.S. Latino economy was the second fastest-growing among the world’s ten largest economies, with an annual average real growth rate of 4.6%, trailing only China at 5.3%.

The report also highlights that California leads in Latino GDP, with other top states including Texas, Florida, New York, and Illinois. Here are the top five states by Latino GDP in 2022:

– California: $935.2 billion

– Texas: $686.6 billion

– Florida: $347.8 billion

– New York: $268 billion

– Illinois: $125 billion

Wealth Surge Among Latinos

The economic boom for Latinos has been accompanied by a significant increase in household wealth. According to the Hispanic Wealth Project, Hispanic household wealth has tripled over the past decade, achieving this milestone two years ahead of the nonprofit’s initial goal. By 2022, the median net worth of Hispanic households reached $63,400—more than three times higher than in 2013, adjusted for inflation.

This wealth surge is driven by increasing homeownership rates, rising home prices, and a growth in Hispanic-owned businesses. Despite this progress, there remains a notable gap compared to non-Hispanic white households, which had a median net worth of $283,300 in 2022.

Looking Ahead

The Latino Donor Collaborative also forecasts that the U.S. Latino economic output will surpass Japan’s by 2024 and Germany’s by 2027. This projection is supported by national GDP forecasts from the International Monetary Fund.

This demographic trend is vital for replenishing the U.S. working-age population, with a young Latino turning 18 every thirty seconds. The findings were unveiled at the L’Attitude conference, which focuses on Latino leadership, participation, and representation across various sectors including corporate America, media, and entertainment.