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Tuesday, August 19, 2003

Native Americans will control $63 billion of the U.S. economic market by 2008, according to a new study from the University of Georgia.

Based on an analysis of data from the U.S. Census Bureau data and other federal agencies, the Selig Center for Economic Growth projected how much minorities will spend on goods and services. Even though American Indians and Alaska Natives are the smallest minority group in the country, they wield significant economic clout, the study found.

From 1990 to 2008, Native American buying power will rise a whopping 227 percent, according to the center's director Jeffrey M. Humphreys. This growth rate was the third highest among minority groups -- Hispanics and Asian-Americans ranked first and second, respectively.

In concrete numbers, Native Americans will spend $45.2 billion this year alone, the study found. This was up from $37.2 billion in 2000, and up from $19.2 billion in 1990.

"Although comprising less than one percent of the country's population in 2003, Native Americans will control over $45 billion in disposable income, which makes this diverse group economically attractive to businesses," Humphreys wrote in "The Multicultural Economy: Minority Buying Power in the New Century."

The reason for the explosion was simple, according to Humphreys. Economic opportunities in Indian Country growing, thanks to a rise in population and a spike in entrepreneurial activity among Native Americans.

"In terms of growth rates, American Indian-owned firms �- which primarily are centered in the business services, personal services, and construction industries �- out-performed all other groups," Humphreys wrote, citing data from the Census Bureau.

Ranked by state, California was tops in terms of buying power. The more than 600,000 Native Americans who call the state home will spend $7.4 billion in 2003, the study found.

Oklahoma, whose Native population is nearly 400,000, came in second, at $4.4 billion, followed by Texas ($3.1 billion), Arizona ($2.9 billion), and New Mexico ($2.1 billion). A notable entry in the top 10 was Alaska, where about 120,000 Alaska Natives will spend $1.7 billion this year, according to the report.

Despite the gains, Native Americans fall behind other minority groups in terms of growth rate. Hispanic buying power will increase by 357 percent in 2008 while Asian-American buying power will increase by 345 percent, the report found.

The Native growth rate was still higher than whites (128 percent) and the U.S. population as a whole (148 percent), according to the study.

Buying power is defined as disposable income -- the amount of money a person spends on goods and services after taxes.

Get the Report:
The multicultural economy 2003: America's minority buying power (University of Georgia August 2003)

Relevant Links:
The Selig Center for Economic Growth, University of Georgia - http://www.selig.uga.edu

Related Stories:
Census Bureau reports on Native-owned firms (5/23)
Report: Native buying power increases (9/8)
Native purchasing power by state (9/8

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