Saturday, January 16, 2010

Metro Denver EDC releases 2010 economic forecast

Metro Denver EDC releases 2010 economic forecast

The Metro Denver Economic Development Corporation (Metro Denver EDC) presented the 2010 Economic Forecast for Metro Denver at Vectra Bank's 17th Annual Economic Forecast Breakfast. Chief Economist Patty Silverstein discussed key economic activity in 2009 and gave her outlook on the economy for the coming year. The event was sponsored by the Metro Denver EDC and the Denver Metro Chamber of Commerce.

According to Silverstein, one of the longest and deepest economic contractions in the nation's history appears to have ended. The potential strength and length of the recovery, however, remains in question.

"The recession has left a swath of damage and challenges to be addressed in 2010," stated Silverstein. "Because consumers, businesses, and governments need time to rebalance their budgets and rebuild their resources, growth this year will be sluggish."

Metro Denver's economy, however, fared better than many regions through the early months of recession. While employers in the seven-county region cut jobs at certain points in early 2008, the region also added net new jobs through the first three quarters of 2008.

While the region's outlook for 2010 is far from rosy, positive rankings throughout 2009 suggest Metro Denver has maintained the solid fundamentals necessary to support growth once the nation's economy recovers including:

Denver ranks first among the nation's most desirable places to live, according to a 2008 poll by the Pew Research Center. A 2009 poll by Harris Interactive showed Denver ranks with San Francisco as the nation's second-favorite place to live.

Metro Denver won numerous accolades for its relatively stable housing markets in 2009. Forbes called Metro Denver one of 10 "Best Cities for a Housing Recovery" and the nation's best metropolitan area in which to buy a home. Real estate correspondents with NBC's "Today" show named Denver the U.S. city most ready for a housing rebound, and Builder magazine named Denver among five housing markets likely to recover quickly. BusinessWeek identified Boulder as the nation's strongest housing market in 2009.

Metro Denver cities are consistently recognized for their good quality of life, affordability, cultural facilities, and highly educated workforce. In 2009, Forbes named Boulder among the 10 "Best Cities for Recession Recovery," and nearby Louisville ranked first on Money magazine's "Best Places to Live" list. Also in 2009, Loveland ranked seventh on a list of 10 "Best Places to Live" by U.S. News & World Report.

Like Metro Denver's economy, Colorado's economic growth has frequently outpaced the national average, and the state's advantage appeared to hold early in the recession. In fact, the nation experienced eight full months of job loss before sustained Colorado losses began in September 2008. The state's employers then caught up quickly with their counterparts nationwide, and by the middle of 2009, job loss in Colorado matched - and subsequently exceeded - the pace of job loss reported nationwide.

Colorado's economy has distinct challenges ahead, particularly as state and local fiscal imbalances grow. The state's labor markets have also been impacted, and substantial job growth here is unlikely until the national economy stabilizes. Colorado's economy - like the nation's economy - will remain weak throughout 2010, but healthier growth should follow thanks to the state's many advantages for businesses and residents.

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