Forget Mexico City or São Paulo. Miami is emerging as the true capital of Latin America, from where a new economic superpower is reshaping the Americas – and it’s not a country. U.S. Latino economic power has quietly outgrown every Latin American nation.
It is not the country of Brazil, but Latinos living in the United States that represent the largest Latino economy in the world. With a combined GDP of $3.6 trillion, this vibrant community ranks as the fifth-largest economy globally—set to climb to third place within a few years. Home to the world’s second-largest native Spanish-speaking population after Mexico, U.S. Latinos fuel unprecedented economic growth, driven by a young, dynamic population with increasing access to education and technology.
While Brazil’s population of 212 million is more than three times the size of the 62 million Latinos living in the U.S., its economy, with a GDP of $2.3 trillion, lags significantly behind. Brazil doesn’t even rank among the world’s top ten economies. Meanwhile, U.S. Latinos are on track to surpass Japan and Germany, potentially becoming the third-largest economy globally by 2027—or even sooner. This economic trajectory underscores the remarkable growth and influence of Latinos in the United States.
The U.S. Latino economy became the fastest-growing in the world after China’s prolonged COVID lockdowns. Between 2019 and 2022, it expanded at an impressive real average annual growth rate of 4.8%—2.6 times faster than the overall U.S. economy. Only India poses a potential challenge to U.S. Latinos’ rise to becoming the world’s third-largest economy.
Latinos are Reshaping the Demographics of the U.S.
Latinos make up one-fifth of the U.S. population today, a share expected to rise to one-third by 2030. Driving 71% of the country’s overall population growth, this surge is fueled primarily by births within the Latino community.
With a median age of 29—well below the national median of 38—U.S. Latinos represent a younger, faster-growing demographic. Between 2022 and 2023, the Latino population grew by 1.8%, far outpacing the 0.2% growth of the non-Latino population.
Immigration took center stage during the presidential elections, with promises of mass deportations sparking backlash, for instance from the construction industry in Texas. Implementing such plans will be weighed against economic factors.
U.S. Exceptionalism and Latino Labor: Moving Hand in Hand
Global economic activity is slowing down and only the U.S. economy seems to remain strong, despite worrisome debt levels. Investors like to refer to “U.S. exceptionalism”, mostly boosted by the tech sector.
Latino workers are stepping in to fill the gaps as the American workforce ages and Baby Boomers retire. This younger, growing demographic, with higher birth rates, is driving workforce renewal as most are already of working age or will be soon.
Despite facing marginalization in some areas, Latinos lead the charge with high labor participation rates and strong growth potential. In 2022 alone, the working-age Latino population grew by 725,000, while non-Latino workers declined by 673,000.
Latinos Moving Up
Latino participation in higher education is on the rise, particularly in technical fields. Between 2010 and 2021, their enrollment in engineering programs surged by 74%, with similar increases across other STEM (science, technology, engineering, and mathematics) disciplines. This educational advancement is supported by increased access to technology and digital connectivity, giving Latino students better opportunities to excel in their studies.
On the entrepreneurial front, Latinos are emerging as a powerful force in American business. They are twice as likely to start businesses compared to non-Latinos and show greater willingness to relocate for opportunities. By 2021, the number of Latino-owned businesses reached 5.1 million, with these entrepreneurs adopting AI technology at twice the average rate. This combination of education and entrepreneurship is helping Latinos overcome traditional barriers and strengthen their economic position in society.
The Latino Vote was crucial in the U.S. for Trump to Win
U.S. Latinos are not just becoming more influential economically, but also politically. Contrary to what many might think, it was the Latino (male) vote that gave Donald J. Trump the win in the last presidential election. Trump boosted his support among Latinos by 13%, rising from 32% during his runoff with Biden to 45% in the most recent election.
Promises of a thriving economy resonated with the Latino population who had been hit hardest by inflation. Many U.S. Latinos come from countries with failed economic policies, such as Cuba and Venezuela, with which economic issues particularly resonate.
