A new economic forecast for Kauai finds that following a modest recovery from the pandemic, the county is at a critical juncture with an impending national recession threatening to affect the flow of mainland visitors on which the county so heavily relies. Prepared by the University of Hawaii Economic Research Organization under contract by the Office of Economic Development, the report, “Declining U.S. Outlook is a Rising Risk for Kauai,” is the first Kauai County-focused economic forecast since 2019. The report examines key sectors, emerging trends and potential challenges that influence the county’s economic outlook.
The report notes that while inflation has receded, a national recession looks increasingly likely due to tightening credit and rising interest rates constraining demand.
Still, UHERO maintains that Kauai’s unique attractiveness to visitors is reason for optimism.
