City's retailers face further downturn in 2025, warns bank

Staff reporter

Hong Kong's retail sales in January and for the whole of 2025 may both see a 5 percent drop, following a nearly 10 percent drop in December, according to Morgan Stanley.

Retail sales by value in December plunged by as much as 9.7 percent - for the 10th month in a row - while that for the entirety of 2024 fell by 7.3 percent.

Jewelry watches and clocks, and valuable gifts recorded the largest decline of 14.5 percent, according to the Census and Statistics Department.

A government spokesman noted that the short-term performance of the retail sector would continue to be impacted by shifts in the consumption patterns of visitors and residents.

However, the sector is expected to benefit from various measures implemented by the central government, along with proactive initiatives by SAR authorities to promote tourism, enhance market sentiment, and boost employment income.

Additionally, Morgan Stanley attributed the decline to the faster pace of Hong Kong residents leaving the city than that of mainland visitors entering, despite the resumption of the multiple-entry scheme in Shenzhen.