Economics

Hong Kong Protests Bring Record Retail Sales Slump in August

  • Retail sales decline by most on record as tourism industry hit
  • Sales in watch sector fell by almost half as Chinese stay away
Olivier d’Assier of Axioma discusses the protests in Hong Kong and his outlook for the city’s economy.(Source: Bloomberg)
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Months of protests in Hong Kong are taking an increasing toll on the city’s economy, with retail sales declining by a record amount in August.

The protests and the police response -- both of which are becoming more violent -- have slammed the tourism industry, with visits from mainland China down 42% in August. That collapse has affected Hong Kong’s status as a shopping hub, with data released Wednesday showing a year-on-year decline in the value of retail sales of 23%. A government spokesman said the result was the worst ever.