State expects economy
to continue growing

Hawaii should experience continued growth in jobs and personal income this year, thanks to gains in tourism, construction and federal spending, the state's latest economic forecast said yesterday.

The Department of Business, Economic Development and Tourism said in its Quarterly Statistical and Economic Report that real personal income in the islands is expected to increase 3 percent in 2005.

Total wage and salary jobs are projected to increase 1.9 percent, up from a 1.8 percent projection in the department's last forecast.

"Hawaii continues to benefit from the combined effects of strong investment spending and export income from visitors and the federal government," department Director Ted Liu said. "We believe that these conditions offer the proper environment to prepare Hawaii's infrastructure for the future."

The latest forecast relies, in part, on expected economic growth in the United States and Japan. The U.S. real gross domestic product is forecast to grow 3.4 percent this year, while Japan's GDP is expected to grow at a rate of 1.1 percent, the department said.

The state predicted a record 7.3 million visitors will travel to Hawaii in 2005, a 5.1 percent increase from 2004. At the same time, the department projected visitor spending to reach $11.4 billion, about 6.1 percent higher than last year.