Colorado’s economy accelerated in 2018
Colorado’s economy found a new pep in its step last year, growing at its fastest pace since 2015, according to the U.S. Bureau of Economic Analysis.
State GDP measures the output of goods and services in a state. It rose 3.5 percent, adjusted for inflation, in Colorado last year, up from 3.1 percent in 2017 and 2.4 percent in 2016. It was up 4.4 percent in 2015.
“Overall, it was impressive that we had good growth across all areas. It was pretty diverse,” said Gary Horvath, a Broomfield economist who tracks the state economy.
Colorado ranked seventh overall among states for economic growth last year. Washington was the top performer with a state GDP growth rate of 5.7 percent, followed by Utah at 4.3 percent, Idaho at 4.1 percent and Arizona at 4 percent, according to the BEA.
By the fourth quarter, things were shifting locally and nationally. Washington dropped down to ninth, Idaho to 11th and Utah to 25th, and Arizona to seventh for economic growth. Colorado picked up the pace to 3.8 percent, the sixth-fastest rate among states, due largely to a rebound in oil and gas activity.
Texas had the top performing economy in the fourth quarter when measured at an annualized rate. It was followed by Wyoming, Oklahoma, Alaska and New Mexico.
Mining, which is dominated by oil and gas activity, contributed nearly a third of the GDP gains measured in Colorado in the fourth quarter. But for the entire year, activity was flat with 2017.
Construction, by contrast, was an important player early in 2018, but by the fourth quarter, it was subtracting from growth. Important contributors to economic growth in Colorado for all of 2018 included professional, scientific and technical services; real estate; information; wholesale and retail trade; and manufacturing.
Colorado’s share to U.S. GDP didn’t budge. The state accounted for $1.80 of every $100 generated in U.S. economic activity, and the whole Rocky Mountain region contributed $3.50. California contributed $14.50 of every $100 generated, followed by Texas at $8.70 and New York at $8.20.