UCLA researchers say the economic punch packed by U.S. Latinos is now so large it would rank as the world’s fourth-biggest national economy, edging past Japan. The finding, rolled out during a Cinco de Mayo briefing at UCLA, casts Latino households, workers and small business owners as a driving force in U.S. growth. Here in Los Angeles, that surge translates into serious buying power for local storefronts and a deeper talent pool for employers.
The 2026 U.S. Latino GDP Report pegs Latino GDP at $4.4 trillion in 2024, nearly 9% larger than Japan’s economy, and finds that real Latino GDP grew 6.4% in 2024 while non-Latino GDP grew 2.4%, according to UCLA Fielding. Since 2019, Latino GDP has grown nearly three times faster than the rest of the U.S. economy, turning what used to be treated as a “niche” market into a headline macro story.
Latinos now number more than 68 million people nationwide, or about one in five U.S. residents, and that population growth is coming mainly from births rather than immigration. Latino consumers generated roughly $3 trillion in 2024, with rapid expansion of Latino-owned employer firms and faster business formation than among non-Latino owners, according to MyNewsLA.
How the researchers measure Latino output
The Latino GDP Project, a collaboration between UCLA’s Center for the Study of Latino Health & Culture and Cal Lutheran’s Center for Economic Research & Forecasting, builds a separate Latino GDP using federal microdata and sector-by-sector estimates, according to the Latino GDP Project. The team also publishes state and metro breakdowns, giving cities a way to trace how Latino workers, entrepreneurs and households are reshaping local labor markets and consumer demand.
Why this matters for Los Angeles and California
For California in general and Los Angeles in particular, the report mostly confirms what many local business owners already feel in their bottom lines: Latino economic activity is a central pillar of state output and job creation. Earlier this year, guest columnist David Hayes-Bautista argued that Latino-driven growth helped push California into the ranks of the world’s largest economies, with Latino GDP supplying a substantial share of that rise, according to CalMatters.
Researchers' warnings and policy priorities
“Latinos are key to a bright future for the United States,” co-author David Hayes-Bautista said, underscoring that education, workforce training and inclusive business support will be essential to keep the momentum going, according to UCLA Fielding. The authors caution that choices on public investment in schools, as well as immigration and labor policies, could significantly change the trajectory they are currently documenting.
Where to read the full report
The 2026 U.S. Latino GDP Report is slated for full release in May and will be available for download on the Latino GDP Project website, which also hosts presentations and metro-level PDFs, including a UCLA presentation delivered on Cinco de Mayo, according to the Latino GDP Project. City officials and local business groups say they are watching closely to see which sectors the report tags for growth as they shape their workforce and economic development plans.
