Hong Kong March retail sales jump 40.9% in fourth month of growth

HONG Kong’s March retail sales rose 40.9 per cent from a year earlier, the second-biggest percentage rise on record, as consumer and visitor spending continued to improve, though the low base of comparison also contributed, government data showed on Thursday (May 4).

Sales increased to HK$33.6 billion (S$5.7 billion) in March, marking a fourth consecutive month of growth. This follows a 31.3 per cent rise in February, and came close to a record-high 44.8 per cent jump in February 1988.

Strict Covid-19 restrictions have weighed on Hong Kong’s economy since early 2020, grinding tourism to a halt and battering sales at bars, restaurants and shops.

All border checkpoints were reopened fully in early February, while the city dropped its Covid-19 mask mandate from Mar 1 in a move to lure back visitors and restore normal life – more than three years after stringent rules were first imposed in the financial hub.

“The recovery of inbound tourism and private consumption should continue to benefit the retail sector,” a government spokesperson said. “The disbursement of a new round of consumption vouchers will render further support.”

Earlier in March, the government launched called “Hello Hong Kong”, to bring back tourists and businesses. It also launched a “Happy Hong Kong” campaign late last month to boost local spending and the economy.

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In volume terms, retail sales increased 39.4 per cent year on year in March, the biggest percentage rise on record. This comes after the revised growth of 29.7 per cent in February, and surpasses the 33.1 per cent recorded in February 1988. REUTERS