Colorado GDP grows by 2.7% in second quarter

Colorado’s real gross domestic product increased at an annual rate of 2.7% in the second quarter, just below the national rate of 3%, according to initial data from the U.S. Bureau of Economic Analysis.

GDP reflects the market value of all goods and services produced in an economy, with real GDP representing inflation-adjusted statistics.

Colorado’s second-quarter GDP performance represented a marked improvement from the first quarter, when the state’s economy shrank by 1.7% (revised). Colorado’s real GDP totaled $437 billion in 2023.

State-level GDP data can be extremely volatile. Initial BEA estimates for the first quarter showed Colorado’s GDP growing by 2.3%. The BEA updates GDP data at least twice, incorporating new and revised source data.

Initial numbers show second-quarter real GDP increasing in 49 states and the District of Columbia, with only Alaska recording negative GDP. Colorado ranked 31st in the nation for GDP growth. Percentage changes ranged from 5.9% in Idaho to negative 1.1% in Alaska.

Agriculture, forestry, fishing and hunting contributed the greatest impetus to growth in Colorado, adding 0.63 percentage points. Arts, entertainment and recreation contributed 0.51; professional, scientific and technical services, 0.48; real estate and rental and leasing, 0.47, finance and insurance 0.45; durable-goods manufacturing 0.3; and non-durable goods manufacturing, 0.22.

Smaller contributions came from state and local government, 0.19; mining, quarrying, and oil and gas extraction, 0.09; utilities, 0.05; construction, 0.02; wholesale trade, 0.06; transportation and warehousing, 0.02; health care and social assistance, 0.12; and federal civilian government, 0.04.

Declining sectors included retail trade; information; management of companies and enterprises; administrative and support and waste management and remediation services; educational services; accommodation and food services; other services; and military.