Hong Kong posts worst retail sales figures since Sars in 2003
Luxury spending down sharply last year from 2013 as Beijing cracked down on graft and fewer non-Chinese tourists visited the city
Hong Kong's annual retail sales figures fell for the first time since the Sars outbreak in 2003, declining 0.2 per cent last year - mainly due to lower sales of luxury products and some durable items as tourists left less cash behind.
Year-on-year sales values in December dropped by 3.9 per cent to HK$47.8 billion after four months of consecutive growth. The government said that reflected "the slackening in visitor spending".
The worst figures in 11 years were dragged down mainly by a 13.7 per cent fall in sales of luxury goods, which include jewellery, watches and other high-end items.
That was followed by an 8.1 per cent drop in sales of electrical goods and photographic equipment, which fall under the category of durable goods.
But despite the decline, an economist said he was optimistic retail sales would rebound this year because the economy was improving.
Last year's total retail sales came to HK$493.3 billion, which represented a decrease of 0.2 per cent in value but an increase of 0.6 per cent in volume when compared with 2013.