$2.8 trillion in U.S. Latino household consumption in 2024 made it the world's third-largest consumer market, larger than Germany's and India's, according to a new Latino Donor Collaborative report.
The report said U.S. Latinos generated a $4.4 trillion economy and 28.2% of U.S. economic growth in 2024, far above their roughly one-fifth share of the population.
Since 2019, inflation-adjusted Latino household consumption has grown nearly three times faster than non-Latino spending, while Latino households produced $3.4 trillion in gross domestic income.
By 2025, U.S. Latinos accounted for 92.6% of all new households formed; Latino-owned employer businesses reached 5.7 million in 2022, with growth spreading beyond California and Texas into states such as North Carolina and New Jersey.
The findings point businesses, investors and policymakers to Latinos as a key source of future demand, labor-force growth and entrepreneurship as overall U.S. population growth slows.
With Latinos driving the U.S. economy, what is the key to finally closing the vast household wealth gap?
The Latino consumer market is now the world's third largest. What are businesses missing about this powerful economic force?
Latino businesses are booming. How can this growth engine be protected from volatile federal trade and immigration policies?
The U.S. Latino Economy Hits $4.4 Trillion: Unprecedented Growth, Challenges, and the Path Forward
Overview
In 2024, the U.S. Latino economy reached an unprecedented scale, with its GDP soaring to $4.4 trillion—making it the fourth largest in the world and nearly 9 percent larger than Japan’s entire economy. This remarkable growth is driven by a real Latino GDP increase of 6.4 percent, far outpacing the 2.4 percent growth of the non-Latino GDP. Since the onset of the COVID-19 pandemic, the Latino economy has stood out as the fastest-growing among major global economies, highlighting its powerful and expanding influence on both national and global stages.