Latino GDP in the U.S. reaches $1 trillion, a historic milestone for the country's economy.
Image created by Mathieu Stern – Free use under the UnsplashFree License In the United States, Latinos have achieved a historic mark in the country's economy after having reached
Image created by Mathieu Stern – Free use under the UnsplashFree License
In the United States, Latinos have achieved a historic mark in the country's economy after having reached an extraordinary contribution of 4.1 trillion dollars, according to the Latino GDP Report 2025, annual report on the gross domestic product (GDP) of the Latino population of the United States.
The report revealed that the Latino population accounts for 30.61% of national GDP growth, despite only accounting for 19% of the country's total population. Considering that the greatest drivers of economic growth for Latinos are educational attainment, income, labor force participation, household formation, and homeownership, these drivers challenge stigmatizing narratives about this population.
Who is behind the Latino GDP Report and what does it seek to demonstrate?
The report is made by the Latino Donor Collaborative (LDC), a non-profit organization founded by entrepreneurs, in collaboration with the Arizona State University (ASU) and the UCLA Center for the Study of Latino Health and Culture (CESLAC) and the Center for Economic Research and Forecasting at California Lutheran University (CLU).
The initiative was launched in 2017 to quantify the economic contributions of the Latino community in the United States. Furthermore, the report seeks to provide objective data and observations on the economic power of the Latino community, which is often perceived with stigma.
Negative narratives have intensified in the last decade. For example, in a 2016 presidential debate, Donald Trump equated Latino immigrants as "those who are taking jobs, taking manufacturing jobs, taking money, killing." These narratives homogenize Latinos as invaders and criminals, regardless of their age, gender, or reason for migrating.
He Latino GDP Report 2025, seeks to demonstrate that the Latino community is a vital force for economic growth in the country. It highlights the growing role of Latinos in economic development, which outstrips national growth rates in many areas. Best expressed by Matthew Fienup, executive director of Cal Lutheran's Center for Economic Research and Forecasting and co-author of the report:
“While the growing Latino GDP in the United States drives overall U.S. GDP growth, all Americans will benefit for years from the hard work, resilience, and optimism of Latinos.”
Latin American GDP in the United States 2025: What do the report's data reveal?
Key figures: 39% of GDP growth real*
Latin American GDP in the United States: $4.1 trillion dollars
Percentage of contribution to the country's economic growth:
Population percentage: 19.1% of the total population
Number of people: 63.7 million Latinos
According to the United States Census Bureau surveys, the Latino population of the United States was 63.7 million people as of July 1, 2022. This makes the Latino population the largest ethnoracial minority in the country, being 19.1% of the total population, composed primarily of Mexicans, Caribbeans and Central Americans.
Furthermore, the report found that although Latinos make up only 191% of the total U.S. population, they accounted for 30.6% of the national GDP growth by 2023 and were responsible for 39% of GDP growth. real* between 2010 and 2021 UCLA.
*Real GDP It allows for a more accurate comparison of economic production over time, reflecting the physical increase or decrease in goods and services.
This growth is possible thanks to this population's labor force participation, education, income, and consumption. These economic drivers are usually broken down as follows:
Educational level:
Between 2010 and 2023, the educational attainment of Latinos grew substantially. During that period, the number of highly educated Latinos more than doubled, reaching 125.31% of the total, while the number of non-Latinos with higher education increased by only 40.31% of the total. In other words, the number of people with higher education grew 3.1 times faster for Latinos than for non-Latinos.
Income:
Latinos have a lower per capita income than non-Latinos, according to US Income Report: 2023. With an annual average, Latinos get $65,540 compared to the average non-Latino family income of $80,610 annually.
Despite this gap, from 2010 to 2023, Latinos' wage income grew by an annual average of 3.81% in 3Q, compared to only 1.51% in 3Q for non-Latinos. During that period, Latinos' income increased by a total of 61.51% in 3Q, while non-Latinos' income only increased by 21.41% in 3Q. Thus, for more than a decade, Latinos' incomes have grown nearly 2.9 times faster than non-Latinos' incomes.
Population growth:
From 2010 to 2023, the Latino population grew by 28.51% of the total population, compared to only 4.31% of the non-Latino population. The Latino population's growth is 6.7 times greater than that of non-Latinos, even though they represent only 191% of the country's total population.
Contribution to the workforce:
Between 2010 and 2013, Latinos contributed an average of 726,000 workers per year to the U.S. labor force. This compares to the rest of the population, who only contributed an average of 510,000 workers, despite having a total population base five times larger.
Formation of Households:
The formation of Latino households represents one of the aforementioned demographic force multipliers. From 2010 to 2023, the number of Latino households grew by 46.71% of total households, while the number of non-Latino households increased by only 10.41% of total households.
Home Ownership:
Trends in income growth and household formation are reflected in homeownership. Homeownership growth among Latinos has significantly outpaced that of non-Latinos in every year since 2010. From 2010 to 2023, the number of Latino homeowners increased by a total of 58.61%, compared to only 10.41% for non-Latinos.
Why is Latin American GDP a historic milestone for the U.S. economy?
The Latin American GDP in the United States is impressive not only for its extraordinary contribution but also for its rapid growth. “A steadily growing GDP benefits all Americans by providing them with a better standard of living, greater opportunities for socioeconomic mobility, and higher wages,” Fienup said.
And the US Latin American GDP is among the top 10 largest globally, ranking third in terms of growth between 2010 and 2023. It should be noted that during that entire period, the average annual growth of the US Latin American real GDP was 4.41% TP3Q. Compared to the US economy as a whole, it was half that, at just 2.21% TP3Q.
Furthermore, between 2010 and 2023, Latino real GDP grew by a total of 74.8 percent of total GDP, compared to only 27.4 percent of non-Latino GDP in the country. This reflects the fact that Latino GDP is growing 2.3 times faster than the overall U.S. GDP and 2.7 times faster than non-Latino GDP.
These data challenge the paradox between the negative stereotypes imposed on the Latino population and the wage gap, where Latinos earn the least and have the greatest economic contributions among the entire U.S. population.
Fun fact: If Latinos in the United States were their own country, they would be the fifth-largest economy in the world, surpassing India, the United Kingdom, and France. That's bigger than Texas and New York combined!
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