American Latin immigrants generate $ 1.6 billion of GDP, said the report

American Latin immigrants represented $ 1.6 billion of GDP in 2023, according to a new Latin Research Report Donor collaborative, contributing to a global purchasing power for American Latinos of $ 4.1 billions of dollars. The 2023 data is the most recent year included in the study.

American Latin GDP, measuring the economic impact of the cohort, increased by 50% in 2023 compared to 2015, stimulated by the increase in education, entrepreneurship and the participation of the workforce, said economists from Arizona State University, which conducted research. By way of comparison, the estimated GDP of non-latinos in the United States increased by 17% on the same period of time.

The report occurs while the Trump administration has an unprecedented effort to withdraw undocumented immigrants from the United States

California’s economy alone saw $ 989 billion in Latin GDP in 2023 and should exceed a dollar billion in 2025, according to the report. Texas, Florida and New York also have Latino GDP worth hundreds of billions of dollars.

And Latin American expenses constitute a greater part of the global economy.

As baby boomers are aging, their share of expenses decreases by around 4% per year, according to the report, and American Latinos are about to fill the spending difference. Their share of American consumption increases by more than 3% per year. Real consumer expenditure has increased by almost 5% per year, compared to 2.4% for non-latinos, driven by population changes and the increase in disposable income.

“It is very clear-if there is a miracle solution for the economy beyond AI, it is the Latin consumer. They are workers, entrepreneurs and consumers, leading to significant growth between the American economy sectors,” said Sol Trjillo, co-founder of Latino Donor collaborative and president of the Trujillo group.

“The speed of the rise of brands that market Latinos, because their traditional customers should be alarm clock for each CEO and CMO,” said Beatriz Ace Vedo, CEO and co-founder of Suma Wealth on stage on Wednesday in Velocity, an economic conference in Los Angeles where the Latin-GDP report was presented.

Acevedo stressed the companies that have seen their growth accelerate with their share of American Latin customers:

• Modelo in 2023 exceeded Budweiser to become the Berre de Beer N ° 1 in America by capturing 50% of the Latin consumer market in the United States (Modelo has lost this week this crown against Michelob Ultra.)
• Mobile has exploited the growth of its Latin market share to jump the frog At & t And Verizon become n ° 1 in the growth of subscribers.
• Dr Pepper made a past descent Pepsi To capture second place in soda behind Coke By doubling its share of Latin consumers over the past decade.
• The WNBA has considerably increased its American Latin viewer on television and then saw the most visual growth of all professional sports.
• Kia has gone from n ° 6 in new car sales to n ° 11 after an increase of 44.5% of sales of the Hispanic market in the past 5 years.

But mass deportations could undermine commercial opportunities and derail this economic progress, experts said in Velocity.

Dennis Hoffman, professor of ASU economics and the main author of the American Latin GDP report, warned the expulsion up to 8.3 million undocumented workers could cause losses of more than 19.5 million workers due to the loss of income and the economic activity provided by undocumented workers.

“We must repair our immigration system. I do not suggest open borders. I do not suggest that we allow people to work constantly undocumented. But our system is repairable,” said Hoffman. “We can sponsor productive, workers and undocumented workers and not suffer from pain that we should incur if we were doing something like that [mass deportations]. “”

Hoffman said his simulation predicts that total GDP could decrease by $ 2.3 billion or 7.7%.