In early June the Bureau of Economic Analysis released Gross Domestic Product at the state level for two-digit NAICS Codes.
Since 1997 Colorado Real GDP has grown at a faster rate than the Real GDP for the U.S. (Sum of States) in 11 of 17 years. The 2014 U.S. rate of growth was 2.2% compared to 4.7% for Colorado. The Mining Sector played a major role in Colorado’s higher rate of growth this past year.
Since 1997 Colorado Real GDP has grown at a faster rate than the U.S. (Sum of States), 2.8% vs. 2.1%.
There were 8 sectors that gained share in 2014, i.e., their percent of contribution to GDP was greater than their percent of the 2014 total GDP. Collectively, they accounted for 27.1% of the 2014 GDP and 46.5% of the change in the GDP.
The following table shows the sectors, their percentage of the 2014 GDP, and their contribution to the GDP.
| Sector | % of 2014 Total | % of 2014 Contribution |
|---|---|---|
| Arts, entertainment, and recreation | 1.3% | 1.8% |
| Utilities | 1.5% | 3.0% |
| Management of companies and enterprises (MCE) | 2.1% | 2.9% |
| Transportation and warehousing | 2.8% | 2.9% |
| Accommodation and food services | 3.2% | 3.4% |
| Construction | 4.4% | 8.6% |
| Wholesale trade | 5.5% | 5.7% |
| Mining | 6.2% | 18.2% |
Key points about the contribution of these sectors to GDP growth are listed below.
• The Mining Sector was the major driver in the growth of the state’s GDP, accounting for 18.2% of the change. Volatility in the price of a barrel of oil could potentially have a major impact on this sector’s level of contribution to the 2015 GDP.
• The contribution of the Construction Sector has been driven by a mix of sustained residential and nonresidential growth.
• The combination of the Arts, Entertainment, and Recreation and the Accommodation and Food Services sectors are commonly referred to as Tourism or Leisure and Hospitality. In 2014 the Tourism sector accounted for 4.5% of the GDP% and 5.2% of its growth. Tourism is an important part of the economy for each of the state’s 64 counties.
• The Utilities sector is small, but it experienced growth in 2014 because of strong overall employment and population growth. In addition, GDP growth increased because there was a significant gain in the number of business establishments in 2014.
• The increase in the MCE sector is a result of a 4.5% increase in the number of MCE establishments. In other words more businesses translated into greater GDP growth.
• Both the Wholesale Trade and the Transportation and Warehousing Sectors are small industries. In 2015 they experienced greater than usual gains in employment, which in turn meant stronger GDP growth.
With 4.7% Real GDP growth in 2014, the state economy had significant momentum moving into 2015. Through the first six months of the year, the state has capitalized on that momentum.
