Strengthening Our Economy
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Hawai`i is facing a challenging period, with many unprecedented events converging to create an economic, financial, and fiscal environment that threatens the very foundation of our national economy. Problems that arose in the national housing sector and sub-prime mortgage market starting in late 2007 have affected the credit markets making it difficult for businesses and individuals to obtain funding for on-going and new projects and operations. In its latest quarterly economic report, the Department of Business, Economic Development & Tourism (DBEDT) says it expects the national recession and the sharp decreases in visitor expenditures in Hawai‘i will continue to affect Hawai`i's economy throughout 2009. Based on downward revisions in inflation forecast, the department revised its forecast to a 1.1 percent decline in the state's 2009 real gross state domestic product from the 1.6 percent decline forecast last quarter. However, based on downward revisions of visitor expenditures in Hawai`i, DBEDT revised its forecast for jobs downward and expects a 3.0 percent decline in the average job count for the year. "Our forecast for this period shows a more gradual decline," said DBEDT Director Theodore E. Liu. "We do not believe it is prudent to predict an economic recovery yet, and all indications are that any recovery will be gradual."  Assuming continued improvement in national and international economic conditions, modest growth in the state's economy is forecast to return by 2011. The visitor arrival count is forecast to increase by 4.3 percent in 2011, with visitor expenditures up 12.0 percent. Real personal income and real GDP are expected to increase 0.6 percent and 1.5 percent, respectively, in 2011. The state's job count will likely see a modest 0.8 percent increase for 2011. That gradual pace of recovery should continue in 2012, barring unforeseen events. |
Important Information »Governor Lingle delivered remarks on Hawai`i's economy at the Chinese Chamber of Commerce of Hawai`i. Read more. Related Information » |
