Wealth of Hispanic families in the USA could triple by 2025

The wealth of Hispanic families could triple by 2025 if trends observed during the last two decades continue, according to a study by the Federal Reserve Bank of St. Louis, Center for Financial Stability of Households.Hispanic families accounted for 2.2% of total U.S. net worth in 2010, despite representing 16.3% of the population. This is because the average household wealth is only $ 108,000 for Hispanic families, compared to $ 543,000 for non-Hispanic families.However, their share of the wealth may be increasing. In the latest issue of In the Balance, William Emmons, economic adviser; and Bryan Noet, political analyst, both of St. Louis Fed estimated that Hispanic families will own between 2.6% and 3.2% of U.S. wealth in 2025. Two factors are involved in this increase: faster population growth and accelerating the growth of wealth of the average household.On the growth of average household wealth, Emmons and Noet gave two scenarios: first, the average levels of wealth of Hispanic families continue their trend line from 1989 to 2010. And the second, the average levels of wealth will grow according to the average rate observed in the period 1989-2010, i.e., loss of wealth prior to 2010 would be permanent if no recovery period occurs.