California’s Latino economy powers nearly a third of the overall growth in activity in the Golden State. Overall, the Latino Economy is now a defining driver of U.S. prosperity. The Latino Donor Collaborative (LDC) has released Part Two of its 2025 Official U.S. Latino GDP Report™, sponsored by Wells Fargo. This new edition builds on Part One, which established the $4 trillion scale of the Latino economy, and now offers state-level forecasts through 2030, alongside a deeper look at Mexican American and immigrant contributions. The findings reaffirm that Latinos are not outsiders but at the center of America’s story.
Latino Economy as America’s Growth Engine
Ana Valdez, President & CEO of the Latino Donor Collaborative, emphasized: “The $4 trillion U.S. Latino economy is not just large, it is growing at more than double the pace of the rest of the nation. This report highlights the engines behind that growth, from entrepreneurs launching millions of businesses to workers and consumers sustaining entire industries. Latinos are powering America’s economic future.”
California Latino Economy Through 2030
For the first time, the report forecasts state-level Latino GDP through 2030. According to the findings, California’s Latino GDP will exceed $1 trillion by 2025 and reach $1.4 trillion by 2030. Texas is expected to surpass $1.1 trillion by 2030. Meanwhile, the fastest growth rates between 2023 and 2030 are projected in Ohio (+87.8%), Pennsylvania (+75.6%), Michigan (+65%), Washington (+62%), Virginia (+60.9%), and Massachusetts (+61.6%).
Sol Trujillo, Co-Founder and Chairman of LDC, explained: “Latino GDP now anchors growth at both the national and state level. Mexican Americans drive three-quarters of output in California, Texas, and Arizona, while states like Ohio and Pennsylvania are on track to nearly double their Latino economies by 2030. For the first time, this report forecasts state Latino GDP through the end of the decade, confirming that Latinos are the most dynamic growth engine across U.S. regions.”
California Latino Economy: One Third of GDP Growth Powered by Latinos
The report highlights the central role of Mexican Americans, who account for approximately 75% of Latino GDP in California, Texas, and Arizona. Latino immigrants generated $1.6 trillion in GDP in 2023, thanks to high labor force participation rates. Between 2018 and 2023, Latinos powered nearly one-third of total GDP growth in California, Texas, and Florida, while their impact in New York reached 42.9%.
Jose Jurado, Senior Research Economist at Arizona State University’s W. P. Carey School of Business, noted: “These forecasts confirm that the Latino growth we reported on earlier will remain a key driver of future economic prosperity. Latinos are sustaining growth not just in California, Texas, and Florida, but in regions often overlooked, like the Midwest and Northeast. These findings are essential for policymakers and business leaders preparing for America’s future economy.”
Latino Consumption Power
Latino consumption reached $2.5 trillion in 2023, growing at an annual rate of 4.9% between 2018 and 2023 — more than double the growth of non-Latino consumption. Their share of total U.S. consumption rose from 9.4% in 2012 to 13.2% in 2023. Latino households also show distinctive consumption patterns, accounting for 20% of total video-on-demand usage, 26% of all vehicle purchases and 68% of auto industry growth, and 34% of media time spent on streaming, compared to 25% for non-Latinos.
Strategic Implications for U.S. Prosperity
The findings of the 2025 Official LDC U.S. Latino GDP Report™ – Part Two, conducted by Arizona State University’s W. P. Carey School of Business, show that Latinos are reshaping America’s economic future across all regions. Their role extends far beyond traditional hubs like California, Texas, and Florida to include fast-growing Latino economies in the Midwest and Northeast. The Latino Economy is firmly established as both the present and future growth engine of the United States.
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