Washington, Nov 6 (ANI): A new study has indicated that despite the recession, Hispanic and Asian buying power is expected to surge in U.S. in the next few years.
"Despite the recession, the underlying growth trends for Hispanics and Asians in the U.S. are still very strong," said Jeff Humphreys, director of the Selig Center for Economic Growth in the University of Georgia Terry College of Business, and the author of the report."Minorities have a lot of economic clout, and these groups in particular are experiencing growth in buying power that greatly exceeds that of the general population," he added.
The report projects the combined buying power of racial minorities (African Americans, Asians and Native Americans) will rise from 1.6 trillion dollars in 2010 to 2.1 trillion dollars in 2015, accounting for 15 percent of the nation's total buying power.
Buying power was defined as disposable income or money that is available for spending after taxes.
Humphreys said the report provides businesses with a valuable planning tool for judging start-up or expansion opportunities and for tailoring advertising, products and media to individual market segments.
Despite massive number of layoffs and the economical loss brought on by the recession, Humphreys said that the outlook for buying power in both groups is positive.
The reason could be favourable demographic forces - increasing population means a relatively young Hispanic population - which means more young Hispanics are starting their careers and moving up their career ladders.
Increased entrepreneurial activity and a rising level of educational attainment also illustrate the upward mobility of Hispanics, the report finds.
Even Asians are much better educated than the average American and therefore hold many top-level jobs in management, professional and scientific specialties.
"The Hispanic and Asian markets in particular are expected to grow at an exceptional rate," Humphreys said.
"For businesses, the message is you don't always have to look overseas to find fast-paced growth." (ANI)