Hong Kong’s retail sales fell in February after 12 straight months of growth as a wave of Covid-19 infections hit the city and anti-epidemic measures weakened consumer sentiment and reduced the number of people going to shop.
Retail sales in February fell 14.6 per cent from a year earlier to US$3.22bn, according to government data released on Thursday. This compares with a revised four per cent increase in January and a 13.7 per cent fall in January 2021. It is the steepest drop since July 2020, during the early months of the pandemic, when sales dropped 23.1 per cent.
“While the local epidemic has shown signs of easing of late, the retail sector will continue to face notable pressure in the near term,” a government spokesman said, adding the new round of electronic consumption vouchers in April should provide support to the retail sector.
In volume terms, retail sales in February fell 17.6 per cent from a year earlier, compared with a revised 1.5 per cent growth in January, which was the biggest fall since July 2020, when it dropped 23.8 per cent.
At the start of this year, Hong Kong implemented its most draconian measures as the omicron variant caused a dramatic spike in infections, and as a result businesses and the city’s economy are reeling from widespread closures.
