The state's booming economy will generate more new jobs this year than previously expected, state economists predicted yesterday.

The latest Department of Business, Economic Development and Tourism report on the economy also noted that the stronger economy will lead to higher than previously forecast real personal income and inflation.

The updated forecast released yesterday predicts 2.4 percent job growth this year, compared with a prior projection of 1.9 percent.

"We continue to be pleased with Hawai'i's current economic performance and optimistic about the year to come," said DBEDT director Ted Liu, in a statement issued with the Quarterly Statistical and Economic Report. "In June, our robust job growth once again made Hawai'i's unemployment rate the lowest in the nation."

In the second quarter of 2005, there were 16,250 more wage and salary jobs than in the second quarter of 2004, an increase of 2.8 percent. Growth was led by an increase of 3,000 construction-industry jobs. Professional and business services contributed the next-greatest increase with 2,800 jobs, while retail trade jobs increased by 2,400, and the transportation, warehousing and utilities sector grew by 2,100 jobs.

DBEDT said projected growth in both the U.S. and Japan economies should help sustain the state's economy. The nation's gross domestic product is forecast to grow 3.6 percent in 2005 after adjusting for inflation, while Japan's GDP is expected to grow at a moderate 1.4 percent rate. Hawai'i's inflation-adjusted gross state product is forecast to rise 3.1 percent this year.

The tourism industry is expected to host a record 7.4 million visitors in 2005, up 6.1 percent from a very strong 2004. Visitor spending is forecast to reach $11.6 billion in 2005, nearly 7 percent higher than 2004.

Reach Sean Hao at shao@honoluluadvertiser.com.