UHERO: DC politics will weigh on Hawaii economy
Updated On: Feb 15 2013 12:22:01 PM HST
An economic forecast by the University of Hawaii says Washington haggling over federal spending will weigh on Hawaii's economy in the short and long term.
The university's Economic Research Organization said in a forecast released Friday that automatic spending cuts set to kick in March 1 are unlikely to occur but just the start of several hurdles.
A budget resolution expires at the end of March, threatening all non-essential government operations. A debt ceiling deadline is in May.
Forecasters say brinksmanship will continue to weigh on Hawaii's economy even as the private sector shows promise.
The report says that long-term, a need to cut federal spending will be a drag on Hawaii's economy for many years.
But the state will benefit from the military's strategic turn toward the Asia-Pacific region.
Copyright 2013 by KITV The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.