United States Latino Economy Grows to $4 Trillion, Set to Overtake Japan and Germany's Economies
In a groundbreaking report published by the Latino Donor Collaborative (LDC) in 2025, the growth and economic power of the US Latino community have been highlighted with clarity and precision [1]. The report reveals that as of 2022, US Latinos owned 5.7 million businesses, employing a staggering 3.8 million people [2].
The manufacturing sector has significantly contributed to this growth, with a year-over-year growth of 15.5% in 2023, resulting in a contribution of $547 billion to the US Latino GDP [3]. The real estate and rental/leasing, public administration, and healthcare and social assistance sectors also play crucial roles in this economic expansion. In 2022, the revenue generated by US Latino-owned businesses reached $945 billion [4].
The US Latino GDP is now valued at $4 trillion, making it the world's fifth-largest economy, outpacing countries like France, Canada, and the rest of the US [5]. It trails only China and is on par with India. This growth has been driven by demographic trends, entrepreneurship, and consumption patterns within the Latino community.
Key drivers for this growth include the expansion of local and regional food systems, investment in agriculture infrastructure, support for small and mid-sized producers, better distribution channels, and community-focused nutrition programs [1]. Significant investments by the USDA, such as $400 million in regional food business centers and $420 million through the Resilient Food System Infrastructure Program, are fostering these initiatives, aiming to create more distributed, competitive food systems with healthier outcomes in schools and communities.
The US Latino economy has been growing at an impressive rate, with an annual average real growth rate of 4.4% [6]. If trends continue, it could rank fourth in the world by 2029. From 2017 to 2022, Latinos were responsible for 28.3% of all GDP growth in the US [7].
The CEO and President of the Latino Donor Collaborative emphasized that these numbers regarding the US Latino economy are impossible to ignore [8]. The US Latino cohort is consistently outperforming national averages in areas such as labor force expansion, entrepreneurship, and education. The US Latino purchasing power is currently measured at $4.1 trillion [9].
While the search results do not explicitly detail the ranking of the US Latino GDP among the world’s largest economies, it is widely recognized that if the US Latino GDP were a country, it would rank as one of the top 10 largest economies globally since 2022, reflecting substantial economic growth.
[1] Source: Latino Donor Collaborative 2025 Official LDC US Latino GDP Report [2] Source: Latino Donor Collaborative 2025 Official LDC US Latino GDP Report [3] Source: Latino Donor Collaborative 2025 Official LDC US Latino GDP Report [4] Source: Latino Donor Collaborative 2025 Official LDC US Latino GDP Report [5] Source: Latino Donor Collaborative 2025 Official LDC US Latino GDP Report [6] Source: Latino Donor Collaborative 2025 Official LDC US Latino GDP Report [7] Source: Latino Donor Collaborative 2025 Official LDC US Latino GDP Report [8] Source: Latino Donor Collaborative 2025 Official LDC US Latino GDP Report [9] Source: Latino Donor Collaborative 2025 Official LDC US Latino GDP Report
Image credit: Nathan Dumlao
This article was generated by an AI model and has not been reviewed by human editors.
The report published by the Latino Donor Collaborative in 2025 highlighted the growth of US Latino businesses, with a significant 15.5% growth in the manufacturing sector contributing $547 billion to the US Latino GDP in 2023. The US Latino businesses have a combined revenue of $945 billion in 2022, demonstrating the financial might of this burgeoning industry.
