Saturday, August 11, 2007

Hawaii's Economic Growth Outlook

State economists made few changes in their outlook for Hawaii's economy in their latest forecast but now say visitor arrivals will decline slightly.

Personal income, total wage and salary jobs, and state gross domestic product are forecast to increase through 2007 and into 2008, but below the high growth rates of previous years.

The quarterly report released recently comes from the state's Department of Business, Economic Development and Tourism. Highlights of the report include:

The forecasts for real personal income growth remained unchanged at 1.8 percent for 2007 and 1.9 percent for 2008.

The inflation forecast is unchanged at 4.5 percent for this year and 3.8 percent for next year.
Hawaii's real G.D.P. growth is now projected to be 2.9 percent in both 2007 and 2008, up slightly from the government's May forecast.

Total visitor arrivals to Hawaii are expected to decline 0.3 percent in 2007, which is attributed to sluggishness in international tourism.

If the present trend continues, a total of 7.54 million visitors will visit the Islands by the end of this year, spending $12.6 billion, $300 million more than in 2006.

Forecasted arrivals in 2008 have now been lowered a half percentage point to 1.5 percent growth.

The 2007 forecast of wage and salary growth this year has been raised to 2 percent, up slightly from the 1.8 percent forecast in May. The increase is based on better-than-expected job growth in the first half of the year.

Job growth has been particularly strong in professional and business services, the health sector, construction and government activities. The forecast for job growth in 2008 remains 1.5 percent.

Source: BizJournals

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