Hong Kong Retail Sector Shows Resilience with 5.5% Year-on-Year Growth in January
In January, Hong Kong experienced a 5.5% year-on-year increase in retail sales, reaching HK$37.3 billion. This growth was attributed to inbound tourism, supporting the sector's performance. The figures marked the ninth consecutive month of growth since May 2025, following a 14-month decline. The slower growth rate in January was partly due to the Chinese New Year holiday falling in February this year, compared to January last year.
Despite the slower growth rate, the retail sector's recovery remained solid, with total retail sales showing a significant increase compared to the previous month on a seasonally adjusted basis. The government spokesperson emphasized that robust economic growth and sustained visitor arrivals would continue to support local consumption and benefit retailers in the future.
Sales of electrical goods and consumer durables surged by 38.7% in January, reaching HK$4 billion. Additionally, sales of jewellery, watches, clocks, and valuable gifts increased by 31.1%, while motor vehicles and parts saw an 18.5% climb. Wearing apparel sales also rose by 5.7% year on year, while fuel sales experienced a 17.5% decline, totaling HK$627 million.
In January, Hong Kong welcomed 4.81 million visitor arrivals, a 1% increase compared to the previous year, with 76% of visitors originating from mainland China. The city is projected to receive 53.8 million visitors in 2026, an 8% increase from 2025. The positive outlook for visitor arrivals is expected to further boost retail sales and support the local economy.
In conclusion, Hong Kong's retail sector showed resilience in January, with steady growth in sales driven by inbound tourism and strong consumer demand. The government remains optimistic about the sector's future performance, citing robust economic growth and sustained visitor arrivals as key factors supporting local consumption and benefiting retailers.