Hawaii exports
to Asia fall 37%

A report shows the drop
in the first quarter was one of
the worst in the U.S.

By Pete Pichaske
Phillips News Service

WASHINGTON -- Hawaii appears to be suffering more than most states from the Asian economic crisis, a report released today suggests.

The U.S. Treasury Department report tallied the financial impact the global crisis is having on each state and found that in Hawaii, exports to Asia during the first three months of 1998 were 37 percent lower than the same period in 1997.

It was one of the steepest declines in the nation, and far below the national drop of 11 percent.

Coupled with Hawaii's unusual dependence on Asian markets -- 72 percent of all Hawaii's exports are to Asia, the second highest proportion in the nation behind New Mexico -- the drop in exports has hurt the close economic ties Hawaii has forged with Asia in the past few years, the report found.

Hawaii exports to Thailand and South Korea have been especially hard-hit, according to the report, dropping by 74 percent and 54 percent respectively.

Exports in refined petroleum products, which the report called Hawaii's principal export sector to the region, declined 58 percent.

The study also found that the economic impact of tourism from Japan, a mainstay of Hawaii's economy, decreased by 25 percent from 1995 to 1997, dipping from $4.3 billion to $3.2 billion.

"Like the U.S. as a whole, the economy of Hawaii has suffered a decline in exports due to the turmoil in Asia," the report concluded.

"The Asian financial crisis is having a real impact on the lives of Hawaii's residents and businesses."

The report was prepared to buttress efforts by the Clinton administration to persuade a skeptical Congress to approve an $18 billion payment to the International Monetary Fund to help bail out the world's ailing economies.

"Clearly events in Asia, Russia and Latin America are having a direct impact on the prosperity of America's farmers, workers and businesses," said Treasury Secretary Robert Rubin in a statement accompanying the report.

"One important way we can act to deal with these threats is to . . . provide the funding that the president has requested for the IMF," Rubin said.

Lawmakers have been reluctant to approve the payment, saying the IMF is too secretive and has failed so far to come up with a constructive plan. Congressional leaders say they may adjourn for the year without voting on the funding.

Nationally, 30 percent of total exports go to Asia.