Posted at 5:01 p.m., Thursday, May 19, 2005
State's economy expected to remain strong
Associated Press
Hawai'i should experience continued growth in jobs and personal income this year, thanks to gains in tourism, construction and federal spending, the state's latest economic forecast said today.The Department of Business, Economic Development and Tourism said in its Quarterly Statistical and Economic Report that personal income in the islands is expected to increase 3 percent in real terms in 2005.
Total wage and salary jobs are projected to increase 1.9 percent, up from 1.8 percent projected in the department's last forecast.
"Hawai'i continues to benefit from the combined effects of strong investment spending and export income from visitors and the federal government," department director Ted Liu said. "We believe that these conditions offer the proper environment to prepare Hawai'i's infrastructure for the future."
The latest forecast relies, in part, on expected economic growth in the United States and Japan. The U.S. real gross domestic product is forecast to grow 3.4 percent in 2005, while Japan's GDP is expected to grow at a rate of 1.1 percent, the department said.
The state predicted a record 7.3 million visitors will travel to Hawai'i in 2005, representing a 5.1 percent increase from 2004. At the same time, the department projected visitor spending to reach $11.4 billion, about 6.1 percent higher than last year.
On the down side, 3.3 percent inflation is expected to affect Hawai'i's economic gains this year, state officials said. Thus, while personal income in the islands is forecast to show 6.5 percent growth in 2005, price increases will hold the gain to 3 percent in real terms, they said.
