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Isle economy
projected to grow
3.5% this year

DBEDT says the construction
industry has been leading
the recovery

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Star-Bulletin staff

Hawaii's economy will show a 3.5 percent growth this year and looks strong for the future, according to a report from the state Department of Business, Economic Development & Tourism.

"The solid performance of Hawaii's economy in the second quarter, combined with continued strength on the mainland, suggests that our growth forecast for this year is on track," said Seiji Naya, DBEDT director.

Naya said the island economy is in a "healthy and sustainable" rate of expansion.

Wage and salary jobs have been growing at a 2 percent rate so far this year and DBEDT said the full-year rate is expected to be 2.1 percent, followed by a 1.9 percent job growth next year. DBEDT said much of the job growth has been in the construction industry, where jobs at the end of August, the latest month for which information is available, were up 9.6 percent from the same time last year.

Stronger economic activity brought more tax revenue to the state government. General fund tax revenues through August were up 9.5 percent from the equivalent period of last year, including an 11.6 percent rise in general excise and use tax revenues.

The detailed quarterly statistical and economic report, the September issue, can be viewed on DBEDT's Web site http://www.hawaii.gov/dbedt/qser.html.