High technology, a main culprit in the sharp downturn Colorado suffered in 2001, could help lift the state out of the current recession, predict Wells Fargo economists Scott Anderson and Ed Kashmarek.
A sharp rebound in semiconductor orders and shipments is raising hopes that the state’s high-tech sector could lead a recovery, the pair note in a report.
Although the U.S. recession officially started in December 2007, Colorado didn’t succumb until the second half of 2008, when elevated energy and commodity prices collapsed.
While Colorado will exit the recession later than the country as a whole, its slump will be shorter in duration, the two economists say.
“A healthier housing market and better all-around credit quality suggest the duration of the downturn in Colorado will likely not be as long as that for the nation,” Anderson and Kashmarek said.
