Hong Kong retail sales rise 4.6% in June as growth streak extends to 14 months

Hong Kong's retail sales witnessed a remarkable 4.6% increase year on year in June, marking the 14th consecutive month of growth. The Hong Kong government anticipates sustained economic development, rising incomes, and a steady influx of visitors to bolster the retail sector. June's retail sales totaled HK$31.5 billion (US$4.01 billion), representing a 9.6% increase in the first half of the year compared to the same period in 2025, according to preliminary data from the Census and Statistics Department.

Growth across various retail categories was broad, with jewelry, watches, clocks, and valuable gifts leading the charge, soaring by 20.1% year on year. Electrical and other consumer durables sales rose by 11.3%, followed by a 9.3% increase in "other consumer goods not elsewhere classified," a 5.1% growth in furniture and fixtures, and a 2.6% rise in books, newspapers, stationery, and gifts.

Conversely, fuels recorded a 15.3% decline, the only category to experience double-digit sales drop, while Chinese drugs and herbs saw a 4.9% decrease.

The Census and Statistics Department had previously reported Hong Kong's economy grew by 5.1% in the first half of the year. Private consumption played a significant role in this robust GDP performance, alongside government spending and boosted exports fueled by the global surge in demand for artificial intelligence-related products.

Finance chief Paul Chan Mo-po anticipates the Census and Statistics Department will revise its annual GDP forecast upwards later this month, with experts predicting a potential growth rate of 4% for the year. Currently, the economy is projected to expand by 2.5 to 3.5% year on year in 2026. However, Chan cautioned that geopolitical developments, US dollar interest rates, and other uncertainties could still influence Hong Kong's economic landscape.

In the first half of the year, Hong Kong welcomed approximately 26.71 million visitors, marking a 13% year-on-year increase. Mainland Chinese arrivals accounted for 20.56 million, while foreign tourists numbered 6.16 million, reflecting year-on-year growth of 16% and 5%, respectively.