The economic power of Latinos in New York continues to surprise, achieving $188.9 billion in GDP, highlighting the area of personal consumption and home purchase, according to a study supported by Bank of America
The Gross Domestic Product (GDP) of the New York metropolitan area’s Latino population was $188.9 billion, an amount larger than the economies of Utah or Kansas.
This is revealed by a new report published by professors Matthew Fienup, David Hayes-Bautista, Paul Hsu and Dan Hamilton financed by Bank of America.
“The large and rapidly growing economic contributions of Hispanic-Latino residents in the New York metropolitan area are driven by rapid gains in human capital, a strong work ethic, and a positive health profile,” the report highlights.
The 2022 New York Metropolitan Area Latino GDP report was published by California Lutheran University and the UCLA Center for the Study of Latino Health and Culture.
The experts identified the top five sectors of Latino GDP in the New York metropolitan area: Finance and Real Estate ($47.5 billion); Professional and Business Services ($22.2 billion); Government ($21.3 billion); Education and Health ($17.8 billion); and Leisure and Hospitality ($16.4 billion).
“The largest component of Latino GDP…was personal consumption, totaling more than $142.4 billion in 2018,” the analysis indicates.
This is the first report of its kind, which provides a perspective of the contribution of Hispanics-Latinos to the economy. The data from 2018 were taken into account, because it was the last year in which they were available, it was indicated.
“It’s no secret how important and impactful the economic contribution of our Hispanic-Latino workforce is to New York City and the metropolitan area,” said José Tavarez, President of Bank of America New York City. “The report provides new insights into the economic contributions of Hispanic-Latino New Yorkers and confirms that this population is a driving force at the local level.”
Dr. Hayes-Bautista indicated that this population has allowed the increase in homeowners, otherwise that item would have decreased from 2010 to 2018.
“The strong contributions of Latinos outweighed the declines among non-Latinos and contributed to these economic variables being positive across the metro between 2010 and 2018,” she noted.
The New York, Newark, and Jersey City Metropolitan Statistical Area (MSA) was the largest in the United States with 20 million people of all ethnicities with 4.9 million Latinos.
“Latinos are growth drivers of the New York metropolitan area economy and an important source of economic strength and resilience,” said Dr. Matthew Fienup.
If Latinos living in the US were an independent country, their GDP would be the seventh largest in the world, the report limits the economic power of this population throughout the country.