Hong Kong retail sales rose 10.5 percent in May from a year earlier, the fourth consecutive monthly gain, boosted by an easing Covid-19 threat. But the growth lagged pre-pandemic levels as inbound tourism is at a halt and global travel restrictions linger.
Sales climbed to HK$29.6 billion (US$3.81 billion), government data showed on Wednesday. That compares with a 12.1 percent rise in April, a 20.21 percent rise in March, and 30 percent growth in February.
“The near-term operating environment of the retail sector will remain challenging given the lack of visitor spending,” a government spokesman said.
In volume terms, retail sales in May jumped 7.8 percent year-on-year, compared with a revised 11-per-cent surge the previous month.
Online retail sales in May soared 53.1 percent in value year-on-year, compared to revised 26.9-per-cent growth in April and a 44-per-cent rise in March.
Sales of jewelry, watches, clocks, and valuable gifts, which depend heavily on mainland tourists, surged 54.8 percent in May versus a revised 93.9 percent rise in April, the data showed.
Clothing, footwear, and allied products rose 12.1 percent in May, compared to a revised 61.2 percent in April.
Tourist arrivals fell 34.8 percent year-on-year in May to 5305, after posting a 38.3-per-cent jump in April in the city’s first growth in arrivals after 21 consecutive months of declines.
Hong Kong’s seasonally adjusted unemployment was 6 percent in the March-May period, against 6.4 percent in February-April, as the labor market was boosted by economic recovery and as the novel coronavirus outbreak receded.
The government saw some sectors to take longer to return to pre-pandemic levels because of an uneven pace of recovery.
The city’s economy grew by a revised 7.9 percent in the first quarter from a year earlier, snapping six consecutive quarters of annual contractions. Official forecasts are for the economy to grow between 3.5 percent and 5.5 percent in 2021, after a 6.1-per-cent contraction last year.