The ColoradoCast, the state’s only short-term economic forecast, forecasts that Colorado’s economic growth will slow considerably in the fourth quarter of 2022.

The current ColoradoCast projects economic growth in October 2022 to slow to a 1.8% annual rate, a considerable slowdown from the current rates in the range of 5% annual growth.

Due to the strong economic recovery after the COVID shutdown, the Colorado economy is projected to remain above pre-pandemic levels. However, the state economy, like other state and national economies, is affected by the headwinds from continued supply chain disruptions, the war in Ukraine, and multiple impacts of inflation.

The slowdown in the forecast model largely is attributed to lags in some drivers of the economy, notably the more national drivers of equity and bond markets. The local indicators of housing prices and labor markets remained relatively strong over the forecast period.

“The slowdown is not unexpected,” said Dr. Phyllis Resnick, director of the Colorado Futures Center. “The Colorado economy is not immune from the stressors facing all economies. Hopefully the underlying strength of the local economy can assist Colorado in avoiding a recession, but warning signs are beginning to emerge.”

The ColoradoCast is a short-term (approximately 6 months ahead) economic forecast for the Colorado economy developed by the Colorado Futures Center, a 501c3 organization dedicated to informing about economic, fiscal, and public policy issues impacting community economic health and quality of life. 

Source: Colorado State University, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.