A recent wave of Covid-19 cases in Hong Kong dealt a blow to jewellery sales as government-led social distancing measures dampened retail businesses and overall consumer sentiment.

Government data showed jewellery sales reached HK$1.88 billion (around US$239.5 million) in March 2022, down 36.8 per cent from year-ago figures. First-quarter sales meanwhile dipped 20.6 per cent to HK$7.7 billion (around US$981 million).

Retail sales in all categories plummeted 13.8 per cent in March and 7.6 per cent in January to March.

Hong Kong attributed the sharp fall to the fifth wave of Covid cases, which heavily impacted the city’s already fragile business environment. The government is counting on a continuously improving Covid situation and the release of the first batch of electronic consumption vouchers in April to support the retail sector in the coming months.