Colorado's 2025 economic outlook is middling
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Illustration: Brendan Lynch/Axios
Colorado was among the nation's leaders in economic growth over the previous decade and a half. Now, though, we're just average.
Why it matters: The tint of the state's economic picture colors everything and sets the tone for the business community.
By the numbers: Middling results are replacing the days from 2008-2023 when Colorado boasted the fifth-fastest-growing gross domestic product and employment rates, and third-largest increase in personal income.
- In 2024, Colorado's GDP grew just 1.6%, landing 41st in the nation, and personal income growth ranked 39th, according to the Colorado Business Economic Outlook from the University of Colorado Boulder's Leeds School of Business.
- Job growth reached nearly 2% with 46,800 jobs added.
What we're watching: For 2025, job growth is predicted to slow, with a 1.2% increase, or 36,700 jobs.
- Of the 11 industries tracked, all but the information and publishing sector are expected to see job growth in 2025.
- Education and health care will add the most positions in raw numbers, but the fastest growth will come in the natural resource and mining industry.
What they're saying: "We should expect and we will see slower job growth," Richard Wobbekind at CU Boulder said Monday as he presented the report at a conference in Denver.
Between the lines: Housing saw the biggest whiplash in recent years.
- From 2008-2023, Colorado ranked first in the nation for home price index growth. In 2024, the state ranked 49th.
The bottom line: "Slower growth … may be the new reality for Colorado as population growth, especially through net migration, remains slow, creating headwinds for labor force and job growth," the report states.