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Figure GDP.3. Compound Annual Growth Rate
(CAGR).
Another important characteristic of a region’s GDP is its
Compound Annual Growth Rate (CAGR). Ideally, a
GDP should have a robust, positive CAGR.
The Latino GDP demonstrated a positive CAGR of 2.9%
for the period 2010–2015. This was the third highest
CAGR of the ten largest economies in the world, higher
than the CAGRs of Canada, the U.S. as a whole,
Germany, Brazil, Japan, France, or Italy.
Figure GDP 4. Latino and Non-Latino CAGR in the U.S.
Figure 5.1 shows the CAGR of the Latino GDP,
compared to the non-Latino GDP for the period 2010–
2015.
The Latino GDP had a CAGR of 2.9%, which is nearly
two times higher than the non-Latino GDP of 1.7%.
Figure GDP 5. Powering the U.S. GDP
The large size and faster growth rate of the Latino GDP
enable it to power the country’s total GDP. Without the
Latino GDP, the non-Latino GDP of the U.S. would
have grown only to $15.91 trillion by 2015. Thanks to
the Latino GDP’s size and growth rate, however, the
total U.S. GDP reached $18.04 trillion by that date.
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