Businesses and unions said yesterday they were fighting increasing economic odds to survive.
A shop workers' union said 4,000 staff had been sacked since the downturn began to bite in October.
'Shops are holding crazy sales with up to 30 per cent off at this time, when March to June is usually a golden period for spring and summer fashion,' said Cheng Nai-yan, spokesman for the Hong Kong Department Stores and Commercial Staff General Union.
'But consumers didn't appreciate the gesture and still kept their purses zipped. It's really difficult,' he said.
The restaurant industry said the sector had just begun to stabilise after a hard few months, but news of negative growth would hit sentiment hard.
The industry expected between 500 and 800 restaurants to close by summer, said Rudolf Yeung Wai-sing, president of the Association for Hong Kong Catering Services Management. About 400 had closed since October.
