University of Hawai‘i Economic Research Organization 2026 Kaua‘i Economic Outlook Summary is now available for public review.
Kaua‘i County Office of Economic Development says the outlook — which is prepared annually — provides valuable insights into the economic trends, opportunities and challenges that shape the Garden Isle’s future. It offers data-driven analysis and forecasts to help inform decision-making by policymakers, businesses, nonprofits and community members.
University of Hawai‘i Economic Research Organization finds that Kaua‘i’s economy is expected to continue growing in 2026, though at a slower pace than in recent years.
Global and national economic challenges are expected to create new pressures on local households, businesses and the visitor industry.
“While the forecast points to a slower pace of economic growth, Kaua‘i has consistently demonstrated its ability to adapt and move forward through challenging times,” said Kaua‘i County Office of Economic Development Nalani Brun in a release about the outlook’s availability. “The strength of our island lies in our people, our businesses and our commitment to investing in the future.”
Increasing oil prices, higher travel costs, inflation and a slowing U.S. economy are expected to weigh on economic activity throughout this year.
However, Kaua‘i’s resilience, supported by continued investment in construction, health care, infrastructure improvements and community development projects, is highlighted in the new outlook — despite those challenges.
It also forecasts modest growth in visitor arrivals during 2026, supported by a strong start to the year, although tourism activity is expected to soften as higher airfare costs affect travel demand.
Kaua‘i’s labor market is expected to remain stable, with unemployment projected to remain low. Construction continues to be one of the island’s strongest-performing sectors.
Inflation and elevated energy costs at the same time are expected to place additional pressure on household budgets, and housing affordability remains a significant challenge because of limited supply and high home prices.
Kaua‘i is expected to avoid a recession under current conditions, but the report notes that economic growth will remain modest and vulnerable to additional increases in oil prices and broader global uncertainty.
The findings underscore the importance of continued investment in infrastructure, housing, workforce development and economic diversification to strengthen Kaua‘i’s long-term economic resilience.
“By continuing to support housing, infrastructure, workforce development and economic diversification, we are building a stronger foundation for future generations while preserving the quality of life that makes Kaua‘i so special,” Brun said.
Members of the public are invited to review the 2026 Kaua‘i Economic Outlook Summary and learn more about the economic trends, opportunities and challenges shaping the Garden Isle’s future.
Visit the Kaua‘i County Office of Economic Development website or Kaua‘i County website to view the report.
Contact Kaua‘i County Office of Economic Development at 808-241-4946 or via email at oed@kauai.gov for additional information.
