Hawaii’s Department of Business, Economic Development and Tourism is sticking with its forecast of slow economic growth in 2023 and 2024, with an expected recovery to pre-pandemic levels in 2025. An expected nationwide recession in 2023 pushed projections down in August, and there they remain.

The good news is that inflation is expected to slow, tourism spending is forecast to rise and the state can expect increased tax revenue. But house sales and overall construction activity will also lessen, and national economic conditions will hold down growth. It’s reassuring that Hawaii’s economy is stable — but national trends affect the islands, too.