Hawaii Economy Growing, But at a Slower Pace

According to a report released by the state Department of Business Economic Development and Tourism, Hawaii’s economy is growing, but at a slower pace then had been previously estimated. Tourism continues to rapidly increase and it is expected that 7.93 million visitors will travel to Hawaii this year and spend $14.12 billion. However, other areas of the economy are moving at a much slower pace. Richard Lim, the DBEDT director, stated, “While nontourism sectors have still not fully rebounded, they are showing positive signs of recovery. That’s why we are focused on policy tools and state support in areas such as construction, renewable energy and light manufacturing.”

The state’s gross domestic product was expected to grow by 2.2 percent, but the latest prediction only has it increasing by 1.5 percent. Construction grown remains slow with a 2 percent expected increase and government jobs will grow by 0.3 percent.

Below are new predictions from the State Department of Business, Economic Development and Tourism:

Visitor Arrivals:
2012 – 8.6 percent increase
2013 – 3.5 percent increase
2014 – 2.6 percent increase

Visitor Spending:
2012 – 15.2 percent increase
2013 – 5.6 percent increase
2014 – 5.2 percent increase

Gross Domestic Product:
2012 – 1.5 percent increase, adjusted for inflation
2013 – 2.3 percent increase, adjusted for inflation
2014 – 2.4 percent increase, adjusted for inflation

Source: Honolulu Star Advertiser, 8-17-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
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