Colorado’s economy grew fast enough last year to surpass its pre-recession highs, but not fast enough to restore jobs or move the state’s recovery from the back of the pack.
State GDP in Colorado rose 1.4 percent last year in inflation-adjusted or real terms, according to a report today from the U.S. Bureau of Economic Analysis.
The total value of goods and services produced in the state increased from $231.85 billion in 2009 to $235.15 billion in 2010.
Economic activity surpassed the $233 billion peak reached in 2008, when a recession hit the state hard.
Still, the state had 130,200 fewer jobs in 2010 than it did in 2008, according to annual average statistics from the U.S. Bureau of Labor Statistics.
Colorado’s economic growth rate ranked 38th in the nation and several states in the region did even worse.
Wyoming’s economy contracted 0.3 percent last year, the worst showing of any state in the nation. Nevada ranked 49th, Arizona 48th, Oklahoma 47th and Montana 46th for their growth.
The fastest growing states were North Dakota, up 7.1 percent; New York, up 5.1 percent; and Indiana, up 4.6 percent.
Colorado’s construction sector represented the biggest drag on the economy, subtracting 0.36 percentage points from overall state GDP, with the closely related real estate sector taking away 0.26 percentage points.
On the positive side, mining, which includes oil and gas drilling, contributed 0.34 percentage points towards growth, durable good manufacturing contributed 0.27 percentage points and retail trade, information adding 0.24 percentage point and retail 0.23 points.
Government spending contributed 0.29 percentage points towards the overall growth rate, but with federal stimulus waning and local governments cutting back, that may fall.
Spending on healthcare and social assistance, which has continued to grow in good times and bad, contributed with 0.22 percentage points.
Despite the below-average rate of growth, Colorado continued to represent 1.8 percent of the overall U.S. economy.
The state’s economy last year was slightly smaller than that of Indiana and Minnesota, but slightly larger than Arizona, Missouri and Wisconsin.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
