The effects of the pandemic on the economy of Hawaii

ABSTRACT

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 pandemicaTMs economic impact in Hawaii by comparing the actual outcomes during the affected period with the pre-pandemic forecast. We explain why HawaiiaTMs experience differed from other states, suggest reasons for a slow recovery, and discuss the pandemicaTMs lasting effects in the Islands. We also describe changes in the economic forecasting process necessitated by the increase in uncertainty.