Hawaii rebounding from recession despite storm, lava

Despite Tropical Storm Iselle and the threat of the June 27 lava flow, Hawaii Island is expected to continue its recovery from the Great Recession in the coming year, according to economist Dr. Jack Suyderhoud.

Speaking Thursday afternoon at the 40th annual First Hawaiian Bank Hawaii Business Outlook Forum in Hilo, Suyderhoud, a First Hawaiian Bank economic adviser and professor of business economics at the University of Hawaii, based his assessments on a number of June interviews with representatives of various industries on the Big Island.

In a Friday phone interview, Suyderhoud expanded on his thoughts about the lava flow threatening the Pahoa area.

“One of the things that always strikes me about events like this is that people do adjust. They will make adjustments here as well. But adjustments will be difficult. Using Chain of Craters Road is not at all desirable. As a result of that, it certainly will be the case that people and businesses will relocate. It’s going to be difficult.”

He added that because Puna is the state’s lowest income district, residents there will be harder hit by the economic impacts of the lava.

“Any other space available for living is going to be higher cost. They’re going to be doubling up with family and friends, doing the best they can under the circumstances.”

A number of East Hawaii construction projects will bolster the economy, including the new interisland cargo facility at Pier 4 in Hilo Harbor and the attendant widening demolition of parts of Pier 1 and widening of Kumau Street.

Punahou Mauka residential development will continue, and the Regency assisted living project will proceed with its build-out.

Meanwhile, Keaau and Puna will see significant activity, including the Highway 130 widening, HMSA’s new facility at Keaau Town Center and Bryson Community Center in Pahoa is awaiting a $20 million project.

Email Colin M. Stewart at cstewart@hawaiitribune-herald.com.