Economic Report Indicates GrowthThe State Department of Business, Economic Development and Tourism (DBEDT) released its latest quarterly economic report predicting continued growth in Hawai`i's economy for this year and next.
"Our data shows that Hawai`i is undergoing a slowdown in its rate of economic growth," said DBEDT Director Theodore E. Liu. "However, we are not forecasting a dramatic correction; in fact, we still expect to see modest economic growth in the state." "People forget that the economy generally goes in cycles," added state economist Pearl Imada Iboshi. Despite recent layoffs, DBEDT's forecast projects growth in personal income, total wage and salary jobs, and state gross domestic product (GDP) over the next several years. In another promising sign, a preliminary report by the Hawai`i Science and Technology Council shows that the state's high-tech industry grew by 3.3 percent between 2002 and 2007 and is expected to continue growing 50 percent faster than the rest of the state's economy over the next 10 years. Increasing high-tech opportunities and diversifying the state's economy are major focuses of the Governor’s Hawai`i Innovation Initiative launched last year. The Governor's six-point plan to boost Hawai`i's economy calls for investing in infrastructure and capital improvement projects; lowering business fees and providing tax relief; attracting outside investments, especially in renewable energy; increased visitor industry promotion and marketing, with a focus on California; expanding the innovative use of federal Temporary Assistance for Needy Families (TANF) funds; and maximizing federal dollars and partnerships. "Investments in critical infrastructure and capital improvement projects are vital to the state's economic engine," said Governor Lingle. This week, Governor Lingle released $26.8 million for capital improvement projects at schools across the state, including $15 million for the design and construction of ongoing school repairs and maintenance, and $10 million to continue the closure and conversion of cesspools at schools statewide to comply with the U.S. Environmental Protection Agency Clean Water Act. The Governor has released close to $60 million in the past month for school improvements and $60 million for construction backlog at UH campuses statewide. In addition, the Lingle-Aiona Administration is focused on implementing the $615 million harbors modernization plan, $2.3 billion airports modernization plan and statewide highway improvements.
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