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Latinos big contributors to multicultural economy.

ATHENS, Ga. -- The buying power of Hispanics living in the United States has hit $1.4 trillion. That's about 10% of the buying power of the entire nation in 2016, according to a new report from the University of Georgia's Terry College of Business.

The report pegs the U.S. Hispanic market as larger than the gross domestic product of Mexico and larger than the economies of all but 14 countries in the world.

The buying power of Hispanics in the United States has increased by more than $900 million since the start of the millennium, according to the report, which notes that minority groups are making the fastest gains in a U.S. economy predicted to hit $16.6 trillion by 2021.

Buying power is simply the amount of money that a person or group has available to spend.

"As America grows more diverse, minority groups are reaping great economic dividends, and business owners would do well to pay attention," said Jeffrey Humphreys, director of the Selig Center for Economic Growth at the Terry College of Business and author of the school's latest "Multicultural Economy Report."

Added Humphreys: "Minority buying power is growing at a faster pace than the white consumer market for a number of reasons, such as demographics, increases in educational attainment and entrepreneurial activity."

The report estimates the buying power for seven subgroups of Hispanic consumers, the largest of which--Mexican-Americans --had $797 billion in buying power in 2016. The second-largest Hispanic subgroup, Puerto Ricans, had an estimated buying power of $146 billion.

African-American buying power, estimated at $1.2 trillion in 2016, will grow to $1.5 trillion by 2021, the report said. African-Americans constitute the nation's largest racial minority market; however, the buying power of Hispanics (an ethnic minority group) is larger.

Asian-Americans make up 6% of the U.S. population and control 6% of the nation's purchasing power. Since 2000, the buying power of Asian-Americans has increased 222% to $891 billion, the biggest percentage increase of any U.S. minority group.

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Title Annotation:SUPPLY SIDE
Publication:MMR
Date:Apr 17, 2017
Words:337
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