People shop for Christmas items at a market in Hong Kong on Dec 12, 2022. (PETER PARKS / AFP)

HONG KONG – Hong Kong recorded a drop of 0.9 percent in its total retail sales for the entire 2022, while it saw a 1.1 percent year-on-year rise in December, according to the Census and Statistics Department said.

For 2022, the value of total retail sales, provisionally estimated at HK$349.9 billion, decreased by 0.9 percent in value and 3.4 percent in volume year-on-year, the department said in a statement on Friday.

The value of online retail sales with provisionally estimated at HK$34.6 billion increased by 20.8 percent over 2021.

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For December, provisionally estimated at HK$33.7 billion ($4.3 billion), the value of the total retail sales increased by 1.1 percent compared with the same month in 2021, the data showed.

For 2022 as a whole, the value of total retail sales, which was provisionally estimated at HK$349.9 billion, decreased by 0.9 percent in value and 3.4 percent in volume year-on-year, the Census and Statistics Department said in a statement

The year-on-year increase in the value in December could be attributed to the improved economic sentiment and the further relaxation of social distancing measures, said the department.

In the fourth quarter of 2022, the provisional estimate of the value of total retail sales increased by 0.9 percent compared with the preceding quarter, while the provisional estimate of the volume of the total retail sales increased by 1.2 percent.

“For the fourth quarter as a whole, there was a small increase of 0.4 percent. Yet, reflecting the severe impact of the fifth wave of the local epidemic in early 2022, the value of total retail sales fell mildly by 0.9 percent for the year as a whole,“ the statement reads.

After netting out the effect of price changes, the provisional estimate of the volume of total retail sales in December decreased by 0.7 percent year-on-year.

The value of sales of electrical goods and other consumer durable goods not elsewhere classified increased by 1.8 percent. 

The department’s data also showed that the value of sales of commodities in supermarkets decreased by 0.3 percent in December over a year earlier. 

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Customers buy goods from a shop with a sign that reads "We accept consumption vouchers" at a market in Tsuen Wan on April 4, 2022. (ANDY CHONG / CHINA DAILY)

For the whole year, the value of sales of commodities in department stores decreased by 9.9 percent. 

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The return of economic activities from the epidemic to normalcy and an expected increase in inbound visitors should bode well for retail sales performance. Improved labor market conditions will provide further support, the department said.