Thursday 30 January, 2014
The entire nation is still reeling from the recession and its resultant economic difficulties. Things are still looking bad and recovery is expected to be slow. In early 2013, the federal government ordered a sequester which has only darkened the country’s economic horizon. But in some places, we’re starting to see the light at the end of the tunnel, and one of those places is Denver, Colorado.
Slow and Steady Growth
The Vectra Bank Economic Forecast Breakfast is an event held each year where a number of noted economists make predictions about Denver’s economy and the economy of the entire country. It’s a public forum that’s attended by around 1,500 people. What the economists say carries quite a bit of weight and they’re usually not far off the mark.
At the 2013 Vectra Bank Economic Forecast Breakfast all three prognosticators said Denver is expected to recover from the recession with flying colors this year. They specifically said that the city’s economy will have its ups and downs, but there will be slow and steady growth that will pull us out of this rut.
Why Denver Fares So Well
The economists don’t just pull their predictions out of the clear blue sky. There are several key indicators that lead them to say this will be a good year for Denver.
One reason is that Denver’s inflation rate is falling. Compared to the rest of the country, Denver’s inflation has always been low. But recently it has been dropping at record rates. This means that in spite of the economic difficulties, Denver has remained prosperous and the standard of living is good.
With low inflation usually comes low interest rates, and this is true in the case of Denver. Denver banks have largely recovered from the sub-prime loan crises and fiscal cliff and are actively expanding their lending. This means it’s easy for businesses to get the funding they need to get started.
For years, Denver has been a tech center and right now, along with other cities on the Rocky Mountain Front Range like Boulder and Ft. Collins, it has one of the nation’s highest numbers of tech workers. There’s a labor surplus in Denver, which is another sign of a healthy economy. During the recession, its unemployment rate didn’t rise as much as that of many other cities.
The forecasters noted that the housing crisis is pretty much over in Denver. There are great real estate opportunities within the city and in nearby commercial centers like the Denver Tech Center, former Lowry Air Force Base, and around the Denver International Airport.
Finally, the forecasters said that local industries are doing well overall, which will most likely lead to growth and prosperity. Education, health and professional services are doing particularly well and there is a boom in financial service jobs. Even though manufacturing is weak, there is some progress to be seen there.
The Mile High City Is Pro-Business
It always helps that Denver and the State of Colorado are so pro-business. This attitude of encouraging entrepreneurship guarantees that when economic troubles hit, it won’t take long for the Mile High City to recuperate and get back on its feet.