Financial Secretary previews good December retail sales

Financial Secretary Paul Chan has indicated that retail sales in December will continue to grow.

In his blog, Chan wrote that with major events being held one after another and asset markets recovering, private consumption rose by 1.6% last year, reversing the decline of the previous year. He previewed that the December retail sales figures, to be announced this Wednesday, will continue to increase, with the growth rate slightly faster than in November.

He said that as we enter 2026, global market conditions are volatile and shifts in international geopolitics are hard to predict, which may intensify the flow and speed of international capital. In addition to maintaining a strong buffer in the financial system, Hong Kong must also set aside sufficient fiscal resources to cope with potential shocks.

He reiterated that the government’s operating account will return to surplus a year earlier than originally estimated. However, even with an improvement in public finances, public resources must still be managed prudently, striving to keep the growth of public expenditure from outpacing revenue growth.