HONOLULU (KHON2) — Hawaii’s economy is projected to grow by 2% in 2025, driven primarily by the construction, real estate, and tourism sectors, according to the Department of Business, Economic Development, and Tourism (DBEDT).
This growth forecast is unchanged from previous projections made earlier this year.
The department noted that the construction industry in Hawaii has experienced continuous growth over the past decade.
Additionally, home sales and prices are rising after a decline in 2023.
Although visitor arrivals are expected to dip slightly this year, tourism is projected to improve in 2025, particularly as the Japanese market begins to recover.
However, full recovery of the tourism industry is not anticipated until 2027.