People of Color See Increase in Economic Buying Power
Every racial and ethnic minority group in America is making financial gains but not at equal rates, according to the latest Multicultural Economy Report from the University of Georgia. The annual report calculates the consumer buying power for minority markets in the U.S.: African Americans, Asian Americans, Hispanics, and Native Americans. The combined buying power of Blacks, Asian Americans, and Native Americans is estimated to be $2.4 trillion. The nation’s Hispanics command $1.5 trillion in spending power, larger than the GDP of Australia. “While minority markets are certainly enjoying more buying power than ever before, the rate of growth differs. We find the largest percentage increases in the Asian and Hispanic markets, followed by relatively slower rates of growth in the African American and Native American populations. Whites comprise the largest share of the U.S. market, but have the slowest percentage rate of buying power growth,” said the report’s author, Jeff Humphreys. African American buying power has seen impressive gains since the end of the last economic downturn, jumping from $961 billion in 2010 to an estimated $1.3 trillion in 2018. Since 2000, the African American market has seen a 114% increase in buying power. Although comprising only 1.3 percent of the country’s population, the buying power of Native Americans was estimated to be $115 billion in 2018, a 185% increase since 2000. Asian Americans command an estimated 6.2% of the nation’s total buying power, roughly $1 trillion. The 267% increase since 2000 makes the Asian market the fastest-growing minority market in the country, with a buying power greater than the GDP of Turkey. Indian Americans comprise the largest subgroup of the Asian American market and account for $283 billion (28%) of the group’s buying power. Hispanics, the second-fastest growing minority market in the U.S., rose by 212%, or $500 billion, since 2000. Mexican Americans comprise the largest of the Hispanic subgroups, accounting for $881 billion in buying power or 57.2% of the Hispanic total. Puerto Ricans are the second-largest group in terms of buying power, commanding $158 billion or 10.3% of the Hispanic market. Read the full report here.