POSTED: 10:06 a.m. HST, Feb 25, 2014
LAST UPDATED: 10:51 a.m. HST, Feb 25, 2014
Hawaii's economy will grow at a slightly slower pace than previously forecast, although the economic expansion remains firmly on track, the state Department of Business, Economic Development and Tourism reported Tuesday.
The downward revision for 2014 and 2015 was mainly the result of visitor arrivals and spending numbers coming in lower than expected, according to the report. However, increases in the construction sector will help offset some of the slowing in tourism.
Gross domestic product, the broadest measure of th state's economic activity is forecast to grow by 2.6 percent in 2014 and 2.2 percent in 2015. Those projections are down from 2.8 percent and 2.5 percent that DBEDT published in its last forecast three months ago.
"We expect the construction industry to lead our economic growth in the next few years," said DBEDT Director Richard Lim. "Externally, economic conditions are improving in the U.S. economy. In Hawaii, tourism's growth, despite record visitor arrivals last year, is stabilizing, so we are depending on construction to be a strong economic driver," Lim said in a news release.