U.S. Latino immigrants generate $1.6 trillion in GDP, report says

CNBC
CNBC
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U.S. Latino immigrants contributed $1.6 trillion to GDP in 2023, highlighting their growing economic significance amid potential risks from mass deportations.
U.S. Latino immigrants generate $1.6 trillion in GDP, report says
A What happened
According to a recent report by the Latino Donor Collaborative, U.S. Latino immigrants contributed $1.6 trillion to the GDP in 2023, marking a 50% increase since 2015. This growth is attributed to rising education levels, entrepreneurship, and labor force participation among Latinos. Their overall purchasing power is estimated at $4.1 trillion, with California alone accounting for $989 billion of Latino GDP. As the Latino population's share of U.S. consumption grows, businesses that cater to this demographic are experiencing significant growth. However, experts warn that mass deportations could reverse these gains, potentially leading to a $2.3 trillion decline in GDP by 2025. The report emphasizes the need for immigration reform to sustain economic progress.

Key insights

  • 1

    Latino GDP Growth: Latino GDP increased by 50% from 2015 to 2023.

  • 2

    Consumer Spending Trends: Latino consumer spending is rising faster than non-Latino spending.

  • 3

    Impact of Deportations: Mass deportations could lead to a $2.3 trillion GDP decline.

Takeaways

The economic contributions of Latino immigrants are significant, but their future is at risk due to potential policy changes.

Topics

Business & Markets Markets Economy Startups/VC

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