The overall pace of economic growth is expected to ease slightly with gross state product gains dipping to 3.1 percent this year, from an estimated 3.2 percent increase in 2004, according to the latest Department of Business, Economic Development and Tourism report on the economy.

The updated forecast released today forecasts growth in total wage and salary jobs of 1.8 percent this year, compared with November's forecast of 1.5 percent growth. Real personal income is expected to rise 2.7 percent, versus a prior estimate of 2.6 percent growth.

During 2004 Hawai'i's strong construction, real estate and tourism sectors helped generate job growth of 2.6 percent or 14,800 new jobs, while estimated real personal income rose 2.6 percent, DBEDT said.

Also today DBEDT raised its visitor arrival estimate to 7.2 million, or an increase of 3.4 percent from 2004. The agency's previous report issued in November predicted 7.1 million visitors this year. Last year, Hawai'i's tourism industry benefitted from a rebound after SARS and fighting in Iraq hurt visitor arrivals the previous year.

Beyond 2005, DBEDT is predicting economic growth to continue but at a slightly slower rate of 2.8 percent growth in real gross state product next year, which is expected to dip to 2.6 percent in 2007.

Job and visitor arrival growth also are expected to slow in 2006 and 2007.