(The Center Square) – Colorado ranks 13th nationally in a new index measuring overall economic competitiveness but scores poorly regarding migration.
The Economic Performance Index, by the economic research group Common Sense Institute, seeks “to assess the overall economic performance of Colorado relative to other states.” CSI uses seven metrics – GDP per capita, labor force participation rate, net business creation, inequality (using the Gini Index), the percentage of people in poverty, median household income, and net interstate migration – to calculate the index scores.
Colorado’s index is 86.7 in 2023, the same score as the prior year. The state’s competitive index has seen a drop since 2020 from 89.9. In 2011, the first year of the index, Colorado scored 85.7.
“Colorado’s ranks 13th in the nation for economic competitiveness, with high marks for income, inequality, share of people in poverty, and labor force participation,” CSI Senior Economist Dr. Steven Byers said in a statement.
Since 2011, the only two metrics to decline in Colorado have been net interstate migration (-34%) and median household income (-1.1%), according to CSI.
“Unfortunately, Colorado’s darkest economic spot is people are leaving the state,” Byers said. “Colorado’s migration ranks 36th nationally.”
CSI noted the state’s economic composition benefits as it differs from other states.
“Colorado’s current industrial composition differs from the U.S. overall in some key areas where GDP and wage growth is high,” the report said. “These include a larger share of professional, scientific, and technical services, 13.3% compared to 9.2% nationally, and mining-quarrying-oil and gas extraction is 2.8% versus 1.3% nationally.”
