Retail Growth in Hong Kong Slows Down in the Second Quarter
The economic growth in Hong Kong is likely to slow down in the second quarter as more shoppers are spending less a sign of an long awaited export rebound that support the economy later in the year. The gross domestic product for the second quarter is exotmated to expanded 2.4 percent compared to a year earlier, based on a median estimate of six economists in a recent survey.
Based on a quarterly basis, three economists gave their forecasts which ranged from 0.7 percent in contraction to the 0.4 percent growth. The economy slowed downed and adjusted to 0.2 percent in January to March quarter compared to the fourth quarter of 2013. Hong Kong exports is a key market that is weak during the start of the year but is slowly improving
Retail sales has also fallen for the fifth consecutive month due to a decline in tourist arrivals and the overall spending coming from both domestic and mainland shoppers. Despites a firm housing and equity market domestic consumption has moderated. Hong Kong retail sector is relying heavily on mainland visitors that accounts for a third of the retail sales in Hong Kong and the Hong Kong Retail Management Association has already revised the 2014 retail sales growth down to 5 percent from 12 percent as analysts has also cut their estimates. The poor performance will likely prompt the government to reduce its full year estimate as well.