Gloomy Economic prospects of Hong Kong
2023.01.04 09:30
Gloomy Economic prospects of Hong Kong
Budrigannews.com – The government said on Wednesday that tightened financial conditions would continue to weigh on consumption, and Hong Kong’s retail sales fell in November, snapping two months of growth.
In value terms, November retail sales were HK$29.5 billion, or $3.77 billion, lower than they had been a year earlier. That was in contrast to HK$31.9 billion in October, when retail sales increased by a revised 4% over the previous year.
Since the beginning of 2020, strict COVID-19 restrictions have weighed on Hong Kong’s economy, halting tourism and reducing sales at bars, restaurants, and shops.
In addition to the requirement to wear masks, Hong Kong has discontinued all of its stringent COVID-19 regulations as of last Thursday. As a result, new arrivals are no longer required to undergo mandatory PCR tests, and the city’s vaccine pass has also been discontinued.
Additionally, Hong Kong is working toward the return of quarantine-free travel with mainland China by January 8.
A government spokesperson stated, “The expected increase in visitor arrivals should benefit retail sales performance,” adding that “continued improvement in the conditions of the labor market” and “further relaxation of social distancing measures” would assist.
The city is being hampered by high inflationary pressure and aggressive monetary tightening in advanced economies. Additionally, asset prices have been impacted by rising interest rates and a pessimistic economic outlook, bringing home prices in November to their lowest level in more than five years.
The value of all retail sales decreased by 1.1% in the first eleven months compared to the previous year.
Retail sales in November were 5.3% lower than a year earlier in terms of volume. That was in contrast to a revised increase of 2.5% in October. The volume decreased by 3.6% compared to the previous year for the first eleven months.
113,763 tourists arrived in November, a tenfold increase from the previous year. That contrasted with an increase of 760.9% in October.
The seasonally adjusted unemployment rate in the city decreased to 3.7% from September to November, marking the seventh consecutive quarter of improvement.
According to the data, sales of jewelry, watches, clocks, and valuable gifts, which prior to the pandemic relied heavily on tourists from the mainland, saw an increase of 13.6% in October before falling by 8.3% in November.
After a decrease of 4.9% in October, sales of clothing, footwear, and accessories decreased by 15.2% year-over-year in November.
In terms of value, online retail sales increased 9.4% in November, compared to a revised 35.1% increase in October. For the first eleven months of 2022, they increased by 21.9%.
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