Big Isle economy
seen recovering
in 2000

Star-Bulletin staff

Despite a drop in employment so far this year, the Big Island economy is expected to recover in 2000, thanks partly to growth in small businesses, a bank consultant says.

Hawaii Pacific University economics professor Leroy Laney, a consultant to First Hawaiian Bank, said an increasing number of entrepreneurs are starting small businesses on the Big Island, with many attracted by the island's pleasant lifestyles.

Laney said preliminary data show a 1.1 percent decline in Big Island jobs for the first half of 1999. That contrasts with healthy gains in 1996 and 1997 and a flat labor market last year, he said yesterday.

Most of the job losses appear to have been in the construction and hotel industries, Laney said.

He predicted another weak year for the county's tourism sector but said the island is likely to see growth in agriculture.

Laney also forecast some rebound in construction, driven partly by demand for upscale housing from Silicon Valley millionaires, many paying cash for the homes.

Laney gave his forecast yesterday at First Hawaiian's annual business outlook forum in Hilo.