HONG KONG Reuters -- Hong Kong retail sales posted the biggest percentage rise in 13 years in February, as economic sentiment improved along with a rebound in visitor arrivals and low figures in the year-earlier period, government data showed on Friday.
Retail sales rose 31.3% from a year ago in value to HK $33.1 billion $4.22 billion, the biggest percentage growth for a month since February 2010 when it grew 35.8%.
Retail sales increased by 6.9% from a year ago, compared to HK $36.2 billion in January.
Strict COVID 19 restrictions have weighed on Hong Kong's economy since early 2020, grinding tourism to a halt and battering sales at bars, restaurants and shops.
All border checkpoints were reopened fully in early February, while the city dropped its COVID 19 mask mandate from March 1 in a move to lure back visitors and restore normal life more than three years after stringent rules were first imposed in the financial hub.
The government launched a promotional campaign called Hello Hong Kong earlier this month to bring back tourists and businesses.
A government spokeswoman said the retail sector performance will continue to benefit from the recovery of private consumption and inbound tourism.
Retail sales in February increased 29.6% from a year ago. That was compared to the 5.1% growth in January. Hong Kong has been battered by its own pandemic measures and spillover from China's zero-COVID policies, but recovering consumer spending on the mainland and a rebound in travel are expected to help the city's economy this year.
The Asian financial hub's economy is expected to grow 3.5% -- 5.5% this year, after shrinking 3.5% in 2022.
Tourist arrivals in Hong Kong in February increased by nearly 557 times from a year earlier to 1.46 million, surpassing one million for the first time in three years. That was better than 2,626 visitors in February 2021 and about 70 times growth in January to 498,689.
The unemployment rate was down to 3.3% in the December to February period, from 3.4% in the November to January period.
Sales of jewellery, watches, clocks and valuable gifts, which were mostly sold to tourists from mainland China in February, increased by 128.6% from a year ago, after 22.5% growth in January, according to data.
Chow Tai Fook said its same store sales growth for Hong Kong and Macau increased by 70% in January-February, while Chow Sang Sang's sales in the two cities increased by about 89% for the period from January 1 to March 15.
After a 15.6% increase in January, sales of clothing, footwear and accessories increased by 104.1% in February.
In February, online retail sales decreased by 4.1% year-on-year in value, compared to a 3.4% drop in January.