If the Latino Community Were a Country, It’s GDP Would be Larger than India’s
A new study commissioned by the Latino Donor Collaborative, a non-partisan organization that works to “bring further understanding and appreciation to the impact made by Latinos in society, politics, and commerce,” has found that the Latino GDP is projected to fuel at least a quarter of the U.S. economy by 2020.
The groundbreaking study (the first time the Latino GDP has ever been calculated) helps break down the common perception that Latinos are a burden on the U.S. economy. While evidence that immigration leads to increased economic productivity is widely available, this is the first study that specifically looks to the Latino community for evidence of economic development. A previous report published in 2015 by the Joint Economic Committee in collaboration with the Congressional Hispanic Caucus estimated the Latino contribution by 2020 to be at around 1.7 trillion dollars. The study by the Latino Donor Collaborative, LDC, published in July nearly doubles this figure.
The study was conducted by David E. Hayes-Bautista, professor of medicine at UCLA and Werner Schink, an economist and CEO and co-founder of Latino Futures Research. As Hayes-Bautista and Schink note on their report “the Latino GDP is large, growing rapidly, and increasingly will provide the U.S. economy the competitive edge to maintain its position as world leader.” This is truly an understatement since the study found that if the Latino GDP were a country it would be the seventh largest in the world.
The LDC’s study is further proof of the significant contribution and positive impact of Latinos in the U.S. All this being said, it is not surprising that more than half of Latinos living in the U.S. do so mainly in 15 metropolitan areas, mostly in California and Florida, where job growth is increasing quickly. And while California continues to be the state with the largest Latino population, Texas’ is growing faster. With a median age of 28, it is no surprise that Latino entrepreneurship is thriving in the Lone Star State. According to a study by WalletHub, Texas is the most fertile ground for Hispanic entrepreneurs who want to see their dreams come true.
Topping WalletHub’s list of 2017’s Best Cities for Latino Entrepreneurs is Laredo, Texas, closely followed by El Paso, Corpus Christi and Brownsville. Rodrigo Solis, president of AtWork –a full-service staffing supplier based in Laredo- thinks the designation is well deserved and that Laredo’s border city location may have something to do with this. “Laredo is considered the biggest inland port in the US … There would be a lot more investments in Laredo if we could receive more government incentives. There is still so much growth potential in Laredo that we have not tapped into. As a new generation comes into play, we should start seeing more diversity in business growth,” says Solis. His observations coincide with the WalletHub and LDC reports.
With Latinos expected to make up a third of the U.S. population by 2050 and Latino businesses growing at 15 times the national rate, the Latino community’s GDP might just surpass one of the top seven world economies by 2050.
What do you think?