Gradual economic recovery seen for Hawaii
Hawaiçi’s economic freeze is expected to begin thawing this year, with improving national and international economies contributing to the start of a gradual recovery.
That’s the view of the latest state Department of Business, Economic Development & Tourism forecast, which says growth in tourism expenditures this year will help boost economic activity.
The new report forecasts visitor spending will rise by 2.3 percent in 2010, or much better than then no-growth forecast it had previously issued for the state.
The report also projects visitors will spend longer periods in the state and slightly higher state domestic product. It said real gross state domestic product will rise 0.9 percent, or 0.1 percentage points more than earlier projected.
The report also said total wage and salary jobs will decline 0.9 percent this year, or the same as DBEDT’s previous forecast. Inflation is expected to rise by 1.7 percent.
DBEDT said it expects modest growth for 2011 and that the gradual recovery will likely continue through 2013 if no unforeseen events occur.