Economic growth in Hawai'i projected

Advertiser Staff

The state is forecasting 1.7 percent growth in Hawai'i's gross state product this year as economic conditions continue to strengthen.

In its quarterly statistical and economic report released yesterday, the Department of Business, Economic Development and Tourism said it also is forecasting significant gains in tourism and jobs next year.

"The forecast reflects Hawai'i's continuing recovery from the effects of last year's national recession and the devastating effects of 9/11 on the travel industry," said department Director Seiji Naya. "We have made up much of those losses this year and should complete that recovery in 2003 as long as the U.S. economy remains on track."

The state agency said it expects visitor arrivals to end the year up 3.5 percent over last year, when the Sept. 11 attacks caused visitors to the Islands to drop 9.3 percent.

This year's gains in tourism, while still sluggish, have brought back about a third of the visitors lost last year, the state said. A projected 7.6 percent gain next year would bring the overall visitor count back up to near the record 2000 level for the state's visitor industry.

The state report noted, however, that growth in the job market will be slower, with a full recovery not expected until next year.

The total wage and salary job count will end the year 0.2 percent below the 2001 level, the state said. Job growth next year is expected to rise 1.4 percent.