Hawai'i's hot economy should continue to grow this year and next, but at a more moderate pace, according to a forecast released yesterday.

The state's economy is benefitting from booming construction and real estate markets and an increase in visitors.

That expansion will continue despite barriers to growth such as a tight labor market and high hotel occupancy rates, said the University of Hawai'i Economic Research Organization.

"Hawai'i is coming off an exceptional year — one that will be tough to match," the UH economists said.

The biggest near-term risk to Hawai'i will likely come from outside the state.

Those include high oil prices and interest rate increases.

"While economic conditions in the U.S. look sound, an end to home price appreciation could undermine spending by consumers, who already are over-extended," the report said.

Here's how key economic indicators are expected to change: