Brewbaker Warns Hawaii Economy Will Worsen in 2026 as 10-Year Yield Climbs to 4.6%
Updated
Updated · Hawaii News Now · May 19
Brewbaker Warns Hawaii Economy Will Worsen in 2026 as 10-Year Yield Climbs to 4.6%
1 articles · Updated · Hawaii News Now · May 19
Summary
Hawaii’s economy is set to weaken this year, economist Paul Brewbaker said, arguing the state still has not returned to its pre-pandemic growth path and is struggling to adapt.
A 10-year Treasury yield rise to about 4.6% from roughly 4% at the end of 2025 is lifting mortgage and other borrowing costs, adding to inflation pressure.
Housing remains the biggest driver of Hawaii’s high living costs, with Brewbaker estimating the state’s overall cost of living at about 25% above the U.S. average.
Small businesses are already feeling the strain, Chamber of Commerce Hawaii CEO Sherry Menor said, with some closing after absorbing as much cost as they can amid persistent uncertainty.
One response is workforce training: the Academy for Healthcare Innovation says its short certificate programs are feeding workers into understaffed healthcare jobs that can pay $46,000 to more than $100,000.