The effects of the pandemic on the economy of Hawaii
by Steven Bond-Smith* and Peter Fuleky*, UHERO
The economy of Hawaii was extremely vulnerable to the COVID-19 pandemic due to its heavy reliance on tourism. This article is a thorough survey of issues affecting a tourism-dependent open economy during the COVID-19 pandemic.
We provide a comprehensive analysis of the pandemic’s economic impact in Hawaii by comparing the actual outcomes during the affected period with the pre-pandemic forecast.
We explain why Hawaii’s experience differed from other states, suggest reasons for a slow recovery, and discuss the pandemic’s lasting effects in the Islands. We also describe changes in the economic forecasting process necessitated by the increase in uncertainty.
read … Working Paper