The global financial crisis and widening global downturn have materially worsened prospects for the Hawai’i economy. Economic conditions are now poor in virtually every visitor market, and as a result we expect the current sharp tourism downturn to continue well into next year, with no significant recovery until 2010. Moderate contraction of the construction industry and the developing state fiscal crunch will also weigh on the local economy. We have not yet felt the full macroeconomic effects of these adverse developments, and next year will see larger job and income losses than we have experienced so far in the current recession.
