Income growth expected in Hawai'i

Associated Press

Hawai'i should see real growth of 1.5 percent in personal income this year, increasing to 1.9 percent next year, according to a state report released yesterday.

Hawai'i's nominal personal income grew by 2.2 percent in the fourth quarter of 2001 and the Department of Business, Economic Development and Tourism forecasts nominal growth of 2.8 percent for 2002, translating into real growth of 1.5 percent when adjusted for inflation.

Seiji Naya, department director, said continued gains in Hawai'i's economy are reason "for cautious optimism."

"We seem to be responding positively to improvement in the national economy," Naya said. "In particular, the number of visitors from the Mainland is returning to the level of a year ago."

Total visitor arrivals in the first quarter of this year over a year ago. However, arrivals were down 24.4 percent in the fourth quarter of 2001 over a year ago in the wake of the Sept. 11 attacks, the department said.

The department's Quarterly Statistical and Economic Report said the forecast reflects expected growth in the national economy of 2.8 percent this year. It also noted that Japan's economy is expected to decline about 1 percent this year and return to positive growth next year.

During the first quarter of 2002, Hawai'i's civilian employment remained steady compared with the first quarter of 2001, while total wage and salary jobs declined by 1.2 percent, according to the U.S. Department of Commerce Bureau of Economic Analysis.

The department expects a job decline of 0.3 percent this year and growth of 2.2 percent next year.

Hawai'i's unemployment rate dropped to 4.6 percent, from 5.3 percent in the last quarter of 2001.