UCLA researchers released a report Tuesday showing the U.S. Latino economy has grown to the equivalent of the world’s fourth-largest gross domestic product, surpassing Japan.
The findings, covering 2024, were detailed during a Cinco de Mayo briefing at UCLA, where economists said the nation’s Latino population continues to be a major driver of U.S. economic growth.
“The latest data reveal that U.S. Latino GDP reached $4.4 trillion in 2024,” the report states.
“For the first time, the economic contribution of U.S. Latinos has grown to surpass the GDP of Japan, making the U.S. Latino GDP the equivalent of the World’s fourth largest GDP,” according to the report.
Researchers said the U.S. Latino GDP report provides a clear picture of the size and rapid growth of Latinos’ economic contribution in the United States. Gross domestic product, or GDP, measures the total value of goods and services produced in a specific area each year and is widely used to gauge economic performance. Growth in GDP is important because it reflects a stronger economy and rising prosperity.
Researchers said the Latino economy is not only large but expanding faster than the broader U.S. economy. Real Latino GDP grew 6.4% in 2024, compared to 2.4% for non-Latino GDP.
From 2019 to 2024, Latino GDP grew 2.9 times faster than the rest of the economy, making it the fastest-growing among major global economies over that period.
“While impressive for its size, the U.S. Latino GDP is truly remarkable for its rapid growth,” the report states.
Latinos now number more than 68 million people in the United States, accounting for about one in five residents, with population growth driven largely by births rather than immigration.
The report also found Latino consumers generated $3 trillion in economic activity in 2024, representing a market larger than the economies of Italy and Canada.
Researchers said gains in education, workforce participation and business formation continue to fuel growth, with Latino-owned businesses expanding far faster than those owned by non-Latinos.
The report is part of the Latino GDP Project, led by UCLA’s David Hayes-Bautista and economists at California Lutheran University.
