Hong Kong financial chief sees rebound in second-quarter retail sales

[HONG KONG] Hong Kong Financial Secretary Paul Chan said he expects a bounce-back in second-quarter private consumption, following more than 12 months of decline.

Retail sales increased in May from a year earlier after 14 months of declines, Chan wrote in a blog post on Sunday (Jul 27), indicating early signs of market stabilisation. He said he was “cautiously optimistic” on the outlook for June data.

An increase in private consumption would be the first quarterly growth since the first quarter of 2024. Chan attributed the recovery to strong capital inflows, stabilisation in the stock and property markets, and large-scale events such as the Hong Kong Football Festival, which attracted international visitors.

Tourism has also surged, with the city welcoming 23.6 million visitors in the first half of the year, a 12 per cent increase from a year earlier, according to the Hong Kong Tourism Board.

The government is set to release the advance estimates for gross domestic product on Jul 31. The median forecast by economists is for 2.7 per cent growth, slowing from 3.1 per cent in the first quarter. BLOOMBERG