Hawaii's economic landscape is poised for a period of slow growth, according to the latest forecasts. The Department of Business, Economic Development and Tourism (DBEDT) predicts that rising tariffs and uncertain economic policies will contribute to inflationary pressures, particularly in late 2025 and throughout 2026. This is expected to impact the Honolulu Consumer Price Index, further weighing on overall economic activity and keeping growth in check during this period.
This economic slowdown is projected to affect various sectors. While tourism is expected to recover steadily, the report from DBEDT anticipates that construction, healthcare, and professional services will be the primary drivers of growth in the coming years. Despite the current challenges, a more robust recovery is anticipated to begin in 2027 as inflationary pressures ease. Growth is then projected to reach 1.8% by 2028.
Entrepreneurs and business owners in Hawaii should carefully consider these projections when making strategic decisions. The anticipated inflationary pressures could affect operational costs, requiring careful financial planning and potentially adjustments to pricing strategies. Furthermore, the expected slower growth through 2026 may necessitate a cautious approach to expansion and investment.
Investors should also take note of the projected economic trends. Sectors showing strong growth, such as construction and healthcare, could present promising investment opportunities. However, a diversified investment approach would be prudent, given the overall economic uncertainty. Staying informed on market trends, such as the monthly real estate statistics provided by Stott, along with other economic data can help mitigate risks and inform investment decisions.
