(Bloomberg) — Hong Kong’s retail sales rose in May for a sixth straight month as the Asian financial hub’s post-pandemic recovery continues.
Retail sales by value increased 18.4% from a year ago, the Census and Statistics Department said Monday. That was lower than the median estimate of a 22.6% increase in a Bloomberg survey of economists. By volume, sales gained 16.5% from a year prior.
Consumption has been picking up in the city after its borders reopened, which allowed the return of tourists. The data shows that the sales value of jewelery, watches and clocks, and valuable gifts increased by almost 52% from May 2022, while those of motor vehicles and parts jumped by almost 55%.
In March, the year-on-year acceleration in sales volume was the fastest pace on record, with the data boosted by the comparison with 2022 when Hong Kong was in the midst of a deadly Covid wave.
At the end of May, the number of mainland visitors to Hong Kong rose to about 60% of pre-pandemic levels, according to Bloomberg Economics, which sees such tourists as a key driver of growth.
The government expects retail sales to improve further in the coming months due to the rebound of tourism. “The number of incoming visitors should continue to increase as transportation and handling capacity expand further,” a government spokesman said in a statement.
Bloomberg Economics forecasts a 5.2% expansion in gross domestic product this year.
