Since 2000, the spending power of every minority group has risen in large numbers. Take Hispanics for example who, in 2000, had a buying power of under $500 billion. According to a new report however, since 2000, Hispanics have increased their economic clout 181 percent to $1.4 trillion in 2016. “That accounts for nearly 10 percent of total U.S. buying power in 2016 and means the U.S. Hispanic market is larger than the GDP of Mexico and bigger than the economies of all but 14 countries in the world.”
And it doesn’t just stop with Hispanics. “The combined buying power of blacks, Asians and Native Americans is estimated to be $2.2 trillion in 2016, a 138 percent gain since 2000. The same time period saw the buying power of Asian-Americans grow by 222 percent, Native Americans by 164 percent and blacks by 98 percent.”
The buying power of whites has increased by 79 percent during the same period.
The new report was publised by the Selig Center for Economic Growth in the latest Multicultural Economy Report from the University of Georgia Terry College of Business. In the report buying or spending power is based on the “total personal income of residents that is available for spending after taxes. It does not include money that is borrowed or saved from previous years. The Selig Center estimates its buying power statistics by applying economic modeling and forecasting techniques to data from various federal sources.”
To view the full report, you can purchase it on the Selig Center’s website. In addition to historical tracking, the report also makes future estimates, for example, according to the report “African-American buying power, estimated at $1.2 trillion in 2016, will grow to $1.5 trillion by 2021.”
Lastly, in a very interesting look the Selig Center also shows the top and low points that each minority group purchases. Take a look below for further insight.
Hispanics
Where Hispanics spend more:
• groceries
• clothing
• cellphone services
• car insurance
Where Hispanics spend less:
• tobacco
• health care
• entertainment
• furniture
• personal insurance
Blacks
Where blacks spend more:
• natural gas
• electricity
• shoes
• phone services
Where blacks spend less:
• new cars
• furniture
• health care
• education
• pensions
Asians
Where Asians spend more:
• dining out
• housing
• public transportation
• education
• clothing
Where Asians spend less:
• utilities
• used cars
• cash contributions
• health care
• entertainment
