The U.S. economy has entered a phase of slower, more uneven growth. Consumer spending is more cautious, investors are less interested than in boom years, and many states and sectors are showing signs of fatigue. Amid that, Colorado stands out as a place that’s still moving forward. Its economy is showing resilience and expansion, where other states are slowing down.

How Colorado’s Economy is Expanding

In Q3 of 2025, Colorado’s real gross domestic product (GDP) grew by 3.5% and by 1.8% year-over-year. That’s reasonable growth in a national environment where growth is muted. Also, new business registrations in the state increased 7.2% year-over-year in Q3, suggesting that there’s more motivation among entrepreneurs. There is increased interest in investments and the use of tools like TradingView to explore options.

Secondly, labor and jobs continue to gain momentum in Colorado. According to the University of Colorado’s forecast, the state is projected to add approximately 36,700 jobs in 2025, with a job growth rate of around 1.2%. While that growth rate is modest, it’s still growth, and will be spread across ten of the state’s eleven major industry sectors.

What’s more, the state has some strengths. Colorado has a highly educated workforce, a strong tech sector, and innovative ecosystems. It also has favorable lifestyle trends that help attract talent. This may help the state’s economy grow when other, more vulnerable states struggle.

The Headwinds Colorado is Facing

However, Colorado isn’t perfect, and its economy still faces some challenges amidst the national slowdown.

One challenge is labor supply. Colorado has seen its population growth slow down, especially with net migration and aging demographics catching up. The combination of fewer incoming workers and more retirements is making it harder to fill jobs and sustain rapid growth. What’s more, consumer sentiment and business investment are more cautious, with the statewide budget forecast showing flat or even slightly down revenue in the near term.

Another problem is that growth rates are likely to slow down. The same forecast that predicted a 3.5% growth in Q3 also suggested that going forward, Colorado’s annual growth might drop into the 1.4% to 1.7% range over the next few years. So, Colorado is also affected by the national slowdown, only that its economy is more resilient.

What Makes Colorado More Resilient Than Other States

There are several factors that make Colorado more resilient than other states in terms of economic growth.

Diverse Economic Base

While some states rely primarily on a single economic sector, such as energy or manufacturing, Colorado’s economy encompasses a diverse range of industries, including technology, services, healthcare, education, construction, and recreation. This diversity protects the economy against challenges in any single sector.

Entrepreneurship and Investments

The uptick in new business filings is a sign that entrepreneurs continue to take chances here. And states with active startup ecosystems usually bounce back more quickly. There’s also a rise in investment activity in Colorado.

Talent Magnetism

Colorado’s quality of life, natural amenities, and growing urban hubs, such as Denver and Boulder, are drawing attention to people and companies. This supports growth even when the national mood is more cautious.

Moderate Inflation

Some studies suggest that Colorado’s inflation in metro areas remains relatively contained, which helps maintain purchasing power and cost stability in the state.

Suppose you live in Colorado or are considering a move here. In that case, you can feel more confident than in some regions that there will be job opportunities, business activities, and decent income growth. If you’re an employer or entrepreneur, the state remains a place where risk is lower compared to most states.

What Should We Watch Next

As an investor, you may be wondering what to watch out for as the Colorado economy continues to expand while the national economy slows. Here are some factors to watch:

• Keep an eye on labor-force growth and participation statistics: If fewer people are entering the workforce or migration continues to stall, job growth in Colorado may flatten or reverse.
• Monitor the business formation trend: New business filings are a good leading indicator. If they start to decline, momentum will eventually dissipate.
• Pay attention to state and local revenue trends: If state revenue drops significantly, public sector hiring and infrastructure investment might suffer.
• Track inflation, the cost of living, and housing: If these numbers rise too quickly, they can erode some of the advantages that Colorado is currently enjoying.
• Look for shifts in specific sectors: Some sectors appear to be performing well, but if one or more show signs of trouble, that could ripple.

Colorado’s Economy Continues to Outperform

Colorado isn’t immune to the national slowdown happening in the U.S. However, it’s performing better than many of its peers for now, thanks to its structural advantages, diversified economy, and business dynamism. Its economy is indicating a rebound in GDP and a strong summer performance in retail and tourism. Still, the expansion is happening at a slower pace than in previous years, and the state’s overall economic trajectory is moderate.