HONG KONG (Reuters – Hong Kong’s retail sector grew for a tenth month in November, as consumers remained optimistic amid the economic recovery. The government also offered digital shopping vouchers to help boost spending.

According to government data, November retail sales rose 7.1% over a year ago to HK$30.7 trillion ($3.94 billion). This compares to a 12.1% increase recorded in October.

According to a spokesperson for the government, “If the local epidemic remains under control the better economic and labour market conditions should continue supporting the retail sector.”

Retail sales increased 4.2% in volume in November, as compared to 9.4% growth the month prior.

In the eleven first months of 2021 total retail sales grew 8.3% in value terms, and by 6.8% volume.

In value terms, November’s online retail sales jumped 27.6% over a year ago, compared to a revised figure in October of 33.9%.

According to data, jewellery, watches clocks, and other valuable gifts sales rose by 14.4% between October’s 23.1% spike, and a rise of 23.1% in October.

Fashion, footwear and other related goods saw a 16.6% increase in November, against 10.9% in October.

The November tourist arrivals rose 59.2% to 9,492 from the previous year. This compares to a 19.6% rise in October. But, visitor numbers plunged by 97.7% from January to October to 81.950.

While the economy of the city grew by 5.4% over the previous year, this is a recovery from the slump caused by the pandemic. But, longer-term prospects are dependent on the effects of the zero COVID policy.

In November, the government revised its forecast for full-year economic growth to 6.4%. This is close to the range of 5.5%-6.5%.

Seasonally adjusted unemployment rates fell to 4.1% from 4.3% during the August-October quarter, as the labor market improved and continued economic recovery.

($1 = 7.7983 Hong Kong dollars)