Economic Forecast Shows Colorado’s Strong Economy to Continue Growing Faster than Nation
DENVER – The Governor’s Office of State Planning and Budgeting (OSPB) released its quarterly economic forecast today showing Colorado’s strong economy continues to grow faster than other states in the United States.
“Colorado’s strong economy continues to grow and outpace other states, and with one of the lowest unemployment rates in the country, Coloradans are hard at work earning more and powering our robust economy. We are continuing to save people money and connect Coloradans to the training and skills they need to fill in-demand jobs, boosting opportunity for Coloradans and our state’s economy now and for the future,” said Gov. Polis.
Colorado’s strong labor market has continued to grow and exceed expectations. This week, Governor Polis announced that in February 2023, Colorado’s unemployment rate returned to pre-pandemic levels at 2.8%, among the lowest unemployment rates nationally.
OSPB’s economic forecast projected positive near-term conditions due to Colorado’s robust labor market, strong consumer demand, and decreasing inflation. While nationally, growth is expected to slow in the second half of 2023, Colorado is protected from many of these pressures due to Colorado’s tighter-than-average labor market and a higher proportion of service spending that helps to shield Colorado’s strong economy from possible downward pressures.
The OSPB economic forecast revised General Fund revenue up $128.1 million in FY 2022-23, $201.7 million in FY 2023-24, and $412.6 million in FY 2024-25. Cash funds are expected to grow 0.9 percent in FY 2022-23 and fall 0.4 percent in FY 2023-24. Cash funds are revised up $78.1 and $49.4 million in FY 2022-23 and FY 2023-24 compared with the December economic forecast.
Earlier this week, Governor Polis and bipartisan legislators announced bold legislation to boost Colorado’s economy and workforce, saving people money on advanced training and education and helping to fill Colorado’s in-demand jobs. These efforts are part of the Polis administration’s work in partnership with the legislature to continue strengthening Colorado’s workforce and economy.