Colorado REALTOR Digital Magazine January 2012 : Page 4
Colorado Outlook – Brighter Days Ahead Colorado’s economy, including its housing market is said to be on the move up. You hear nationally known talking heads like CEO Greg Rand of OwnAmerica.com say Denver is the top city in the nation and the place people should invest. Experts cite things like low unemployment; low foreclosure rates, better consumer confidence and a better than expected finish in 2011 for their optimism for 2012. However, while there is optimism for 2012 there are varying opinions on how fast Colorado’s economy will continue in the direction of a recovery. Economist Richard Wobbekind of the University of Colorado Boulder’s Leeds School of Business predicts Colorado will continue on the road to recovery and add jobs in 2012 following a positive year in 2011. The Colorado-based Business and Economic Research (CBER) report predicts expansion of global domestic product, or GDP, and a faster rate of employment growth in Colorado for 2012. The Governor’s Office of State Planning and Budget, however, predicts slower growth in jobs and output than occurred in 2011. And the Colorado Legislative Council splits the difference with a prediction that GDP will grow faster this year but the addition of jobs in Colorado will slow. Experts say you can see the signs of an economic recovery when strong improvements in the business climate and consumer spending typically precede improvements in the labor markets. CBER feels the national and Colorado experiences in the current recovery are consistent with this historical trend. How is Colorado performing in each of these areas? BUSINESS CLIMATE According to Forbes, Colorado is the fifth best state for business. CNBC also ranked Colorado fifth in the nation for business in June 2011. Neighboring Utah is the top state for businesses. The reason for the optimism is based on Colorado continuing to attract an educated population; tech businesses here have a large pool of technically savvy workers from which to hire, and an “influx of renewable energy companies is powering an economic recovery” with other businesses that are relocating to Colorado. Colorado’s Tourism Industry is included because there are always seasonal jobs in the ski areas, during summer and fall. CONSUMER SPENDING According to the latest Colorado Census Bureau over 31,000 people moved to Colorado last year. This could help increase consumer spending in the state of Colorado in 2012. Consumer spending is closely watched because it accounts for 70 percent page 4 | www.ColoradoREALTORS.com
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