Economic Forecast Shows Colorado’s Economy Remains Strong

DENVER - Today, the Governor’s Office of State Planning and Budget released its quarterly economic forecast which showed Colorado’s continued economic growth. 

“Colorado continues to lead the nation with strong economic growth and unemployment below the national average. Our focus on continuing to strengthen our workforce and saving Coloradans money on housing, education, healthcare, and more will drive an even more dynamic economy while protecting our reserves and the financial strength of the state,” said Governor Polis. 

OSPB has revised up its economic growth expectations from the December forecast due to elevated consumption in the fourth quarter of 2023. Real disposable income is positive and outpacing pre-pandemic growth as inflation is resettling more quickly. The economy is expected to avoid a contraction as consumer demand holds firm, in large part due to services spending and increased investments as the Federal Reserve begins to cut rates.

In FY 2023-24, as a result of General Fund growth expectations and Colorado’s strong economy, TABOR refunds are expected to total $1,994.8 million, a $343.5 million upward revision from December. General Fund revenue is revised up $308.9 million in FY 2023-24, largely a result of stronger than anticipated corporate income revenue, with smaller upward revisions in individual income, insurance, and interest income. General Fund revenue is expected to grow 5.8 percent to $19.1 billion in FY 2025-26 due to stable growth in income and sales revenue as the economy grows at potential GDP.

View the forecast, slides, and supplemental materials. 

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