Colorado economists warn of rising recession risks amid economic slowdown

In recent months, Colorado's economic indicators have shown a concerning downturn compared to national averages. The Governor's Office of State Planning and Budgeting announced that there is now a 50% chance of experiencing a mild recession this year, up from 40% in March. A more severe recession is estimated at a 25% likelihood. Key contributors to this changing economic landscape include a rise in the unemployment rate above the national average and stagnant wage growth. Elizabeth Burger, deputy director of the Legislative Council, emphasized these troubling metrics at a recent meeting with lawmakers. Consumer confidence in Colorado has declined significantly, leading to reduced sales tax revenue. Furthermore, households are increasingly burdened by rising credit card debt, which is reportedly at its highest level in fourteen years. Notably, spending patterns indicate that half of all consumer spending comes from the wealthiest 10% of Coloradans. As a result, economists predict that many families will shift to prioritizing essential purchases over discretionary spending. Bryce Cooke from the planning and budgeting office highlighted that consumer spending is a critical driver of economic activity, emphasizing the shift in household spending habits. The state's economic prospects are further complicated by an anticipated $700 million shortfall in the general fund, which could escalate to $2.6 billion if a recession occurs. Budget director Mark Ferrandino warned that changes proposed in federal policies, including President Donald Trump's tax and spending bill known as the