Sequestration Cost Hawaii $684M
SA: Sequestration could cost Hawaii $684 million this year, according to Eugene Tian, the state's economist — $462 million from the direct loss in federal spending and the rest from the ripple effect through the economy. The reduction could take 0.9 percent away from the state's projected $75.9 billion gross domestic product.
The state's GDP is expected to grow by 2.4 percent this year, Tian estimates, as the construction and service sectors of the economy follow the tourism sector into expansion. The GDP grew by 1.6 percent last year.
Christopher Grandy, a University of Hawaii-Manoa economist who serves on the state Council on Revenues, said sequestration could translate into a $51 million loss in general fund tax revenue this year.
FYI: Entire Hawaii Congressional Delegation Voted for Sequestration
read ... Thanks, Obama
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Annual Hawaii Forecast: Expansion to Strengthen Despite Washington Worries
News Release from UHERO August 9, 2013
Hawaii is headed toward a strong expansion path. While federal tax increases and the spending sequester have weighed on growth in the year’s first half, construction and service sector progress will maintain forward momentum. Incremental contributions from tourism will be more limited as that industry pushes up against capacity constraints. The Islands are poised for several years of moderately rapid growth that will bring measurable improvements for many local families.
A summary of this forecast is available as a service to the public. For more detailed analysis, subscribe to UHERO's Forecast Project.
LINK: public summary