ColoradoCast expects economic growth to slow in coming months
To note: the full report can be downloaded from coloradofuturescsu.org.
The ColoradoCast, the state’s only short-term economic forecast, projects that Colorado’s economic growth will slow significantly in the fourth quarter of 2022.
The current ColoradoCast projects that economic growth in October 2022 will slow to an annual rate of 1.8%, a considerable slowdown from current rates of around 5% annual growth.
Due to the strong economic recovery from the COVID shutdown, Colorado’s economy is expected to remain above pre-pandemic levels. However, the state’s economy, like other state and national economies, is being affected by the headwinds of continued supply chain disruptions, the war in Ukraine, and the multiple impacts of inflation.
The slowdown in the forecast model is largely attributed to lags in some drivers of the economy, notably the more domestic drivers in equity and bond markets. Local house price and labor market indicators have remained relatively strong over the forecast period.
“The downturn is not unexpected,” said Dr. Phyllis Resnick, director of the Colorado Futures Center. “Colorado’s economy is not immune to the stressors that all economies face. Hopefully the underlying strength of the local economy can help Colorado avoid a recession, but warning signs are starting to appear.