Retail sales in Hong Kong has grown by 20.7 per cent to HK$43.1 billion in April – the highest growth in 16 months.

The growth was primarily supported by jewellery, watches and other luxury goods whose sales grew 68.4 per cent.

Sales of miscellaneous consumer durable goods also rose by 44.8 per cent, followed by drugs and herbs with 15.8 per cent sales increase and medicines and cosmetics whose sales jumped 12 per cent.

While most categories saw sales growth, tobacco and alcohol, electrical goods and furniture and fixtures were down as their sales declined by 22.2 per cent, 11.6 per cent and 3.4 per cent, respectively.

Retail business is expected to boom in the coming months with the support of stable labor market conditions and bouyant inbound tourism.