DENVER (KDVR) — The Colorado Office of State Planning and Budgeting released the March economic forecast on Monday, which showed the significant economic impact of COVID-19.
“COVID-19 has impacted the global economy and is having a significant impact on our state’s economy as well. I would call the economic situation in complete flux, and until we have a much better idea what’s going on I wouldn’t put much stock in any economic forecast, although we know the news isn’t good,” said Gov. Jared Polis. “My top priority during this time is protecting the health and safety of Coloradans which also minimizes damage to our economy. We’re doing everything we can to minimize the long-term economic impact of this global pandemic and ensure that Colorado is prepared to come back stronger than before when this crisis is over.”
Colorado’s economy has expanded since the December forecast. However, given the rapid spread of COVID-19, there is a significant risk to the state’s economy.
As schools and businesses close over the coming months, economic activity is expected to slow sharply. It has been recommended to consumers to stay home in an attempt to slow the spread of the pandemic.
The forecast does project that consumer and business activity will return to normal once schools and businesses reopen. However, extended closures can lead to an increasing risk of triggering a recession as workers and businesses lose income.