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Why economists say Colorado's economy is on the brink of a recession

The assessment comes from a Moody's Analytics report saying Colorado's economy is "treading water."
Why economists say Colorado's economy is on the brink of a recession
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Court filings show the government shutdown has forced the layoffs of more than 4,000 federal employees, including some in Colorado.

This has forced many to rely on savings or find gig work as some lawmakers now say the shutdown could extend past the Thanksgiving holiday.

The impacts to Coloradans and the state’s economy are becoming clearer by the day. A recent report from Moody's Analytics said Colorado’s economy is “treading water," but that it is close to a recession.

Denver7 spoke with University of Denver professor Mac Clouse to better understand why.

Why economists say Colorado's economy is on the brink of a recession

“I think those international things are having an impact — the tariffs and the immigration,” Clouse said. “It's going to be a challenge for the ski industries to get as many employees as they normally do, and that's going to have an impact on things like agriculture industry, on the ski industry, on the whole recreation industry, and that's a major part of Colorado's economy.”

Clouse also said Denver and Boulder County’s label as sanctuary designations in the eyes of the federal government only makes the outlook tougher.

The most recent state data from the end of September shows $51 million have been canceled because of the designation and another $23 million remain at risk.

The lost money has only made Colorado’s ongoing budget issues harder to overcome.

Denver currently faces a $200 million budget shortfall, and Aurora faces a $20 million shortfall.

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