A long-awaited pickup in government hiring and growth in the construction sector are expected to keep Hawaii’s economy on a steady upward path this year, although at a slightly slower pace than previously thought, according to a report from a group of University of Hawaii economists.

The University of Hawaii Economic Research Organization revised downward its 2014 and 2015 projections for nearly every major economic indicator compared with its previous forecast, released in October.

"Still, overall economic performance this year will be better than a disappointing 2013," the report’s author’s wrote.

"The leading positive factors will be the public sector’s turn from substantial drag to marginal contributor and the ongoing expansion in Oahu construction," according to the report.

The UHERO report echoed many of the themes contained in a separate forecast issued earlier this week by the state Department of Business, Economic Development and Tourism.

UHERO is forecasting gross domestic product, the broadest measure of economic activity, to grow by 2.9 percent this year and 3.9 percent in 2015. Those were revised downward from 4.3 percent and 4 percent in the October report.

Projections for visitor arrivals also took a hit. UHERO expects visitor arrivals to increase by 0.7 percent this year, significantly lower than the 3.2 percent growth forecast in October.

Although the visitor industry enjoyed another record year, it ended 2013 on a "sour note," according to UHERO.

"The lackluster ending to the year was largely the result of weakness in the U.S. market, where fiscal austerity and uncertainty, along with rising vacation costs, suppressed demand for Hawaii travel," according to the report. "While activity will remain at a high level the days of rapid, recovery-driven visitor gains are behind us."

State and local government jobs were down nearly 1 percent in 2013, while federal hiring was off about 3 percent. Those numbers are on track to reverse themselves this year, according to UHERO.

"Prospects for job growth are a bit better in 2014 than they were in 2013, reflecting the fact that public sector job losses have hopefully run their course," according to the report.

An acceleration of job growth also is expected in the construction sector, helped by government contracts such as the Honolulu rail project.

"Activity in this sector is will continue to ramp up over the next several years," according to the report.