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From 2019 to 2020, Colorado's GDP remained stable at $397 billion, leading many financial forecasters to predict a recession. They were wrong. Over the next two years, the Centennial State's economy weathered the pandemic, high inflation and a war in Ukraine, growing 24 percent. Now, in 2024, economists predict the country will avoid a recession but finally experience a slowdown. That's why we spoke to local experts to find tips for overcoming a stagnant economy – just in case the experts are right this time.
1. Perfect your cooking skills
Although inflation in Denver was higher than the national average last September (5.4 percent to 3.7 percent, respectively), Bill Craighead, program director of the University of Colorado Colorado Springs Economic Forum, expects prices to rise in 2024 will flatten out. An exception could be restaurants, which are still struggling with staff shortages and may need to pay higher wages to attract workers.
2. Embrace boredom
Craighead says sky-high interest rates are leading many financial institutions to offer attractive returns on one of the safest investments on the market: high-yield savings accounts. This also includes the Colorado Federal Savings Bank offer. The Greenwood Village-based, online-only company doesn't have ATMs, but it has an annual percentage rate of about 4.5 percent, one of the highest in the country.
3. Be patient (if you can)
Mortgage rates reached 7.95 percent last November, making home purchases too costly for many. The silver lining? Less demand means better deals than in a hot market. Vivek Sah, the director of the Franklin L. Burns School of Real Estate and Construction Management at the University of Denver, recently snagged a four-bedroom apartment for slightly less than the listed price. Although his interest rate of 6.25 percent is high, he is sure the number will eventually come down. “If I can only carry it for a year or two,” says Sah, “then I can refinance at four or 4.5 percent.”
4. Stop quitting
Denverites always have a preference for the “hard” part of the equation and are more likely than average to take their jobs and push them away. However, if you plan on doing the same in 2024, you might want to wait until you get a new job. Jen Weinberger of Goldstone Partners, a Denver staffing agency, says the local job market is tightening as startup growth slows. So brush up on your small talk for networking events and update your resume. Going with friends will make the former less painful, while Goldstone offers free resume consultations to make you more attractive to hiring managers.
This article was originally published on January 5280, 2024.
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