COLORADO SPRINGS — New data from the Bureau of Economic Analysis (BEA) showed the GDP for the Colorado Springs Metropolitan Area grew at a rate 1.5% higher than the US overall from 2022 to 2023, which is a promising sign for the local economy.
The GDP, or Gross Domestic Product, is the main measure of the size of an economy. It’s the total value of goods and services produced in an area over a period of time.
According to the BEA, the Colorado Springs Metropolitan Statistical Area (MSA) had a total GDP of $53 billion in 2023. It grew 4.4% over the previous year compared to 2.9% for the US economy overall in the same period.
The Colorado Springs MSA includes both El Paso and Teller Counties. There are 384 MSAs in the United States, which are urban areas with more than 50,000 people. Colorado Springs was the 78th largest metro area economy in 2023, moving up three places from the year prior.
Overall, the Colorado Springs MSA was in the top 20% of metro areas for year-over-year growth, placing 63rd out of those 384 in terms of growth rate.
“We have been, over the last several years, on average, growing faster than the rest of the country,” said Dr. Bill Craighead, director of the UCCS Economic Forum. “We still have people moving in. So we're still growing in terms of population.”
Craighead noted the BEA data breaks down GDP into sectors and job industries, with the largest in the Pikes Peak region unsurprisingly found in the professional, technical, and business services category.
“Those are some of the industries that are growing locally, like our defense contracting, cyber security, and things like that,” said Craighead. “Not only are those growing industries, but they attract workers who typically have high levels of education and are highly productive, so they're producing a lot of output. So when we're growing these industries with these highly productive people, at least the way we measure productivity, that adds to our GDP.”
Looking ahead, Craighead said there has been some deceleration in the national economy since the country has passed the pandemic bounce-back phase with fast growth during recovery. But he said there are signs that show the Colorado Springs area is still set for a strong economy.
“I wouldn't be surprised if it's a little bit slower, but I would, based on what I've seen in the employment figures and other indicators, I would still expect us to show pretty solid growth when we get the 2024 [BEA] estimates, which will be late next year,” he said.
Email Senior Reporter Brett Forrest at brett.forrest@koaa.com. Follow @brettforrestTVon X and Brett Forrest News on Facebook.
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