Hong Kong’s retail sales in June rose by 19.6% compared to the same period last year, marking the seventh consecutive month of growth.
This increase was attributed to the recovery of tourism and positive consumer sentiment, according to a statement from the city government on Tuesday.
Sales surge and positive outlook
The retail sales reached HK$33.1bn ($4.25bn) in June, surpassing the 18.5% rise seen in May and the 14.9% growth in April.
The government’s efforts to stimulate the economy played a crucial role in this growth. In March, the “Hello Hong Kong” campaign was launched, aiming to attract tourists and businesses back to the city after lifting all strict Covid-19 restrictions.
Following this success, a “Happy Hong Kong” campaign was introduced in late May to encourage local spending and boost the overall economy.
A government spokesperson expressed optimism about the future, stating that the outlook for retail sales remains favourable. They anticipate increased visitor arrivals, an improved labour market and government measures to support consumption demand.
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Volume sales show steady growth
Retail sales also experienced a robust increase in volume, growing by 17.5% year-on-year in June.
This figure outperformed the revised 16.6% growth seen in May and the 13.1% growth in April. The data highlights the sustained momentum in consumer spending in the region.
Efforts to boost consumption continue
The Hong Kong Retail Management Association initiated the “Happy Hong Kong Shopping Festival” from 1 July to 31 Aug to further enhance consumption and support the retail sector.
The festival features around 6,000 stores offering various discounts and retail promotions aimed at encouraging more spending.
Economic growth slows, but positive forecasts remain
Despite the positive growth in retail sales, Hong Kong’s economic growth slowed to 1.5% in the second quarter compared to the same period last year, down from the 2.9% growth in the previous quarter.
However, the government has maintained its economic growth forecast of between 3.5% and 5.5% for the entire year of 2023.