The U.S. Latino economy is thriving, with recent reports from the Latino Donor Collaborative revealing that Latino GDP in the United States has reached $3.2 trillion. This figure positions it as the fifth-largest global economy if considered independently.
According to L'ATTITUDE Co-Founder Sol Trujillo, the Latino population in the U.S. currently stands at around 65 million people, with projections to reach 100 million over the next 25 years. Trujillo told Yahoo Finance that this represents a significant portion of expected U.S. growth, so the broader economy needs to recognize the opportunities within the fast-growing Latino demographic. Trujillo emphasized that understanding and marketing to this cohort will be key for businesses to find success.
"It's important for capitalists, people that have capital, that believe in investing where the growth is," Trujillo says, adding: "if you're a political leader, you should understand the value of the cohorts that may elect you or not elect you, or people that are going to grow the economy in each of your states or cities or... regions because the Latino cohort is now, through all the data that's here, it's driving the growth in virtually every state, 48 out of the 50 states."
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RACHELLE AKUFFO: The US Latino economy is growing, according to a new report by Latino Donor Collaborative. The US Latino economy has a $3.2 trillion GDP. And when compared on the global stage, the US Latino population comes in fifth behind Japan and Germany. Joining us now with more information is the co-founder of the group behind this project, as well as the L'ATTITUDE co-founder, Sol Trujillo. We also have Yahoo Finance reporter Dani Romero joining us as well. Big thank you to you both.
So, I want to first talk about how this was calculated when you think of the US Latino GDP contributions here and why do you think it's so important to focus on this when you look at it in terms of the broader US economy as well.
SOL TRUJILLO: Well, first of all, thank you for having me. And let me just say the reason why we do this is because we want to make sure that we understand where our growth is as a business person. And right now, you're talking about China and the flattening of their growth rates, talking about other pressures across the globe. And then domestically, we have a baby boomer growth cohort that used to be a growth cohort that is now aging out in a technical sense. And so, the question is, where's the growth in the US economy coming from?
And right now, this study shows, and the reason why I started this study six years ago was that we needed to understand there's a cohort in the United States that basically is about 65 million people, growing to 100 million people over the next 20, 25 year that is now generating a dramatic portion of our growth. So why is it important? It's important for any business to understand where the growth is coming from, and to target consumers, and to do it cost-effectively and cost-efficiently and to service them well.
It's important for capitalists. People that have capital that believe in investing where the growth is. And third, if you're a political leader, you should understand the value of the cohorts that either may elect you or not elect you or people that are going to grow the economy in each of your states or cities or regions because the Latino cohort is now through all the data that's here, it's driving the growth in virtually almost every state, 48 out of the 50 states.
So we have a phenomenon that differentiates the United States from Japan from Europe, and now soon to be China, given the impacts of their slowdown and the ultimate impacts of their single-child policies. So now the United States have a growth engine that we can point to. We Should feed with capital, and we should feed about including them in almost every strategy for every business.