Isle economy gets mixed grade
A new report assessing state economies shows Hawaii getting better
While Hawaii's economy is performing significantly better in 2007 than in previous years, according to a nonprofit group's assessment of state economies, the state still is below average in the economic development and business health arenas.
The 20th Development Report Card for the States, released yesterday by the Corporation for Enterprise Development (CFED), gave Hawaii improved grades over last year's poor performance, in areas ranging from the vitality of the state's business to how well prosperity is shared among citizens.
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The complete 2007 Development Report Card for the States is available online at www.cfed.org/go/drc.
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Hawaii's economy received an "A" for performance but a "D" in the categories that measured the competitive level of Hawaii businesses, the state's entrepreneurial energy and its aptitude for future growth.
While Hawaii's overall economic momentum is good, economists have said that its high cost of living and the lack of affordable housing could prohibit further growth.
"Hawaii has an economy unlike other states," said David Buchholz, research director for CFED.
Even when business is good, high costs and scarce resources can make things difficult for many residents.
It can be tough for many Hawaiians to own a home or find full-time employment rather than part time or seasonal work."
Last year, Hawaii received a "C" for performance and an "F" in all other categories.
Hawaii moved up in this year's report card because it has maintained an unemployment rate of 2.5 percent, the lowest of any state, and its poverty-rate ranking improved from 20th to sixth along with income distribution, which moved up from 26th to sixth.
Drops in the number of households that completed high school or had access to primary health care as well as increased energy costs contributed to Hawaii's low ranking for future economic growth.
Negative business vitality trends included an increase in the number of business closings as well as drops in venture capital, new companies and annual state personal income.
The state Department of Business, Economic Development & Tourism said in its last Quarterly Statistical and Economic Report that it expects to see continued economic growth for Hawaii into 2007, with personal income, total wage and salary jobs, and gross domestic product all forecast to increase.
The only states to earn straight "A" marks on the CFED report card were Connecticut and Delaware.
Five other states -- Colorado, Massachusetts, Minnesota, Utah and Wisconsin -- had all "A" and "B" grades.
The report card, released annually since 1987, uses 67 measures to assess how the economy is performing for citizens and businesses, and how well a state is situated for its future.
Infrastructure, schools, environment, quality of life, government accountability and transparency, household financial security and how widely prosperity is shared were among the criteria the group examined .
The complete 2007 Development Report Card for the States is available online at www.cfed.org/go/drc.