If Latinos in the U.S. were their own country, their economy would be bigger than Japan’s.
That’s one of the findings in the 2026 U.S. Latino Economic Impact Report from the Latino Donor Collaborative, produced with Arizona State University’s W.P. Carey School of Business.
The report draws on federal data from the Commerce Department, the Census Bureau and the Bureau of Labor Statistics.
Its bottom line cuts straight to the point: U.S. Latinos are “the single most powerful growth engine in America, making its prosperity inseparable from that of the nation.”
Here are 10 ways the report measures the economic impact of Latinos in the U.S.:
10. It’s a $4.4 trillion economy
U.S. Latino GDP reached $4.4 trillion in 2024, according to the report. As a standalone economy, that would rank fourth in the world, behind only the U.S., China and Germany and ahead of Japan, India and the U.K.
9. It’s growing faster than anyone’s
The Latino economy grew at an annualized 5.4% from 2019-24, the report found. That’s more than double the U.S. rate of 2.4%, and faster than any major economy, China included.
8. It punches above its weight
Latinos are about one-fifth of the U.S. population, but in 2024, they drove 28.2% of the nation’s economic growth.
7. Paychecks are climbing fast
U.S. Latino gross domestic income reached $3.4 trillion and grew 8% year over year, according to the report. That’s twice the 4% rate for non-Latinos.
6. They’re the world’s third-biggest shoppers
Latino household consumption hit $2.8 trillion, making it the third-largest consumer market in the world, larger than Germany’s or India’s. Adjusted for inflation, Latino spending grew 6.3% a year from 2019 to 2024, compared with 2.2% for non-Latinos.
5. They’re forming nearly all new households
In 2025, Latino households accounted for 92.6% of all new household formation in the U.S., the report found. And 51% of Latino households own their homes.
4. They’re the workforce’s growth engine
The Latino working-age population grew 4.9% year over year. That compares with 1.5% for the U.S. overall, 0.9% for the Black population and a 0.5% decline among non-Hispanic whites. Latinos account for about two-thirds of the country’s working-age population growth.
3. They start businesses at a rapid clip
Latinos are forming new firms 2.5 times faster than the national average, according to the report, and created three of every 10 new businesses from 2012-22.
2. They’re young
The most common age range among U.S. Latinos is 16-20. That means most of their earning, spending and home-buying years are still ahead of them.
1. New Jersey has a $137 billion stake
New Jersey’s Latino GDP was about $137 billion in 2024, sixth among states, the report found. It trails California ($1.1 trillion), Texas ($820 billion), Florida ($444 billion), New York ($329 billion) and Illinois ($158 billion), and it’s just ahead of Arizona ($132 billion).
