The University of Hawaii Economic Research Organization (UHERO) has released their latest economic forecast today, and titled their report as “Expansion Shifts Into Higher Gear”. According to their economists predictions, Hawaii’s economy is set to grow at its fasted pace since 2005, due to a strong visitor market and a turnaround in the construction industry. UHERO forecasts that the state’s inflation-adjusted gross domestic product would grow by 3.5 percent in 2013. Executive Director of UHERO, Carl Bonham, stated, “Our overall forecast for 2013 is reasonably robust — a little above the long-term average. It’s not as strong as the last boom in 2005-2006, but we’re getting close to that. Tourism is booming and it’s not just arrivals. There are expectations of continue rising room rates that will contribute to high spending. Also, construction and government jobs are no longer negative factors pulling down GDP growth.”
The UHERO team cautioned, however, that one major uncertainty with regards to their forecast is what is happening in Washington DC with the federal spending cuts. According to the report, the country, “still faces a series of fiscal speed bumps in the months ahead and longer-term budgetary challenges. For Hawaii there is the added uncertainty of how the passing of Sen. Daniel Inouye could affect the level of federal spending in the islands. Having said that we think it extremely unlikely that the sequester will be allowed to occur. Instead Congress will probably enact further extensions and more measured cuts that, while weighing on economic activity, will not derail the current recovery.”
Source: Honolulu Star Advertiser, 2-15-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
