Retail sales in Hong Kong will see single-digit growth this year as the economy recovers, the Hong Kong Retail Management Association said yesterday.
Association chairman Yu Pang-chun said even though the retail industry recorded a 4 per cent drop in sales last year because of the Sars outbreak, the business outlook was turning positive.
'The jobless rate has been falling since late last year, while the stock market and the property market have improved. All these factors have helped revive consumer confidence,' he said.
With the relaxation of restrictions on individual travellers from the mainland last August and the move allowing them to purchase goods with their yuan credit cards earlier this month, Mr Yu said he expected the industry to record single-digit growth this year.
'Retail prices will go up and I am confident that the deflation problem can be solved soon,' he said.
Mr Yu said the sales industry had been experiencing difficulties in recruiting staff since November, but he denied that the manpower shortage was caused by the low salaries on offer.