Hawaii Forecasts Slight Economic Upturn in 2007

13 March 2007 1:29am

Hawaii’s economy will show moderate growth in 2007, the latest forecast from the Department of Business, Economic Development & Tourism (DBEDT) revealed. After a flat 2006, DBEDT expects visitor arrivals to increase 1.4 percent in 2007.

According to DBET, real personal income growth to be 0.5 percent in 2006, 1.6 percentage points lower than in the previous forecast. This was mainly because of much higher actual rate of inflation of 5.9 percent in 2006, 1.1 percentage points more than expected earlier. Real personal income is expected to increase 1.9 percent in 2007 and 2.1 percent in 2008.

Honolulu’s Consumer Price Index (CPI) is forecast to increase 4.0 percent in 2007, 0.4 of a percentage point higher than in the previous forecast. In 2008, Honolulu’s CPI is expected to rise 3.4 percent. Total wage and salary job growth is expected to be 1.8 percent in 2007 and 1.5 percent in 2008.