Hawaii’s economy expected to grow by 3.2% despite global conflicts, disruptions
HONOLULU (HawaiiNewsNow) - Hawaii’s economy is expected to grow by 3.2% this year despite global conflicts and disruptions.
According to a new report released Tuesday by the state Department of Business, Economic Development and Tourism, Hawaii’s economic growth prediction was the same figure from the previous forecast in March.
State economists credit the visitor boom and record tax revenue.
In the first four months of the year, the state welcomed 2.8 million visitors, an 83.3% recovery compared to the same time in 2019.
Mainland visitors were nearly 14% higher than the same time in 2019, while international visitors were about 72% lower with few Japanese tourists in the state. The state expects Japanese visitors to slowly return with the government easing travel restrictions.
In the first four months of 2022, the state collected $3.6 billion in taxes — a growth of 45% from 2019.
Economists also said Honolulu’s inflation grew 7.5% — a 30-year high. However, it’s still a full percentage point lower than the national inflation rate.
The increase in inflation was driven due in part by energy costs.
DBEDT director Mike McCartney said the state’s economic recovery is on “a healthy path” but faces challenges of higher fuel costs due to the Ukraine war, higher inflation, shortage of labor, a supply chain disruption and a rise in COVID cases.
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