Hong Kong’s Retail Slump Continued in April Amid Global Shutdown
Hong Kong’s Retail Slump Continued in April Amid Global Shutdown
(Bloomberg) -- Hong Kong’s retail activity extended a decline in April as the coronavirus pandemic continued to constrain global travel.
The city’s retail sales by value fell 36.1% from year-ago levels to HK$24.1 billion ($3.1 billion), for a 15th consecutive monthly decline, according to a government release. That’s ahead of the median economists’ forecast for a 40% slump, according to data compiled by Bloomberg. Retail sales by volume also fell 37.5% from a year earlier.
The latest slide comes after unprecedented declines of more than 40% in February and March amid the height of efforts to contain the coronavirus crisis. Hong Kong’s economy registered its worst quarter on record in the first three months of the year.
Hong Kong has been largely successful in keeping infections under control and is gradually easing social-distancing restrictions. Yet prospects for an economic rebound in the months ahead are clouded by the return of political unrest, especially after China announced plans to impose a national security law.
The anti-China tone of the protests will also make it difficult for Hong Kong’s tourism industry to see a significant recovery given mainland visitors are unlikely to return right away, even as virus-related border restrictions ease.
Visitor arrivals from China tumbled to just under 3,000 people in April, down from a peak of about 5.5 million in January 2019. Overall visitor arrivals to Hong Kong dropped to about 4,100 people in April, down from a peak of about 6.8 million last January.
©2020 Bloomberg L.P.