For the first time since ColoradoCast was released late last year, the forecast is now for a small decline in the economy in early 2023, and a bounce back to growth is expected in early Q2 of 2023.
Even with the modest decline forecast for early 2023, economists continue to believe that the state will avoid a recession.
Declines in the housing market – the strongest driver of the current forecast – are expected to moderate and the state continues to benefit from on-going strength in the labor market, resilient consumers, and indications at a national level that inflation may be easing – all lending resiliency to the Colorado economy. The modest declines in early 2023 are more consistent with the pattern of slowdown evident in the state’s economy during the post pandemic recovery than of a full recession.
While the slight declines for two months in early 2023 were not unexpected, they remained modest and short-lived. This latest forecast continues to support previous assessments that Colorado’s economy is resilient and is well-positioned to weather current headwinds and avoid recession.
Find more details about ColoradoCast at coloradofuturescsu.org/