Hispanic Workers Are Driving US Economic Growth

Economic Output

The U.S. economy is growing, making it the envy of its peers. There are a lot of forces at work, but one demographic has had a notable impact on this recent economic growth.

Hispanic Americans generated $3.6 trillion in gross domestic product (GDP) in 2022, according to a report from think tank Latino Donor Collaborative (LDC). (GDP is the broadest measure of economic activity.) That’s more than the GDP of India, the U.K., France, or Canada from that year.

Economy Within an Economy

The five U.S. states with the greatest Hispanic economic activity are also the five largest state economies: California, Texas, Florida, New York, and Illinois.

From 2017 to 2022, the demographic’s economic output grew at a faster rate than that of all other segments combined in those states.

Over the same period, the overall U.S. Hispanic GDP grew at an annualized rate of 4.6%, which would have been the second-fastest GDP growth rate globally, only behind China, per LDC.

This growth was particularly pronounced in the manufacturing, public administration, retail, and real estate/construction sectors.

Untapped Potential

But in spite of this enormous economic output, a lot of inequality remains between America’s demographic groups. An outsized percentage of Hispanic Americans live in poverty: 17%, compared to less than 13% of the total population, per Axios calculations.

Further investment in lifting up Hispanic American communities could potentially unlock additional growth..

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