People wearing face masks ride an escalator in a shopping mall in Central, Hong Kong, July 22, 2020. (CALVIN NG / CHINA DAILY)
Hong Kong residents’ monthly spending dropped 13 percent in 2020 to about HK$10,700 (US$1,377) from a year earlier, due to the impact of the COVID-19 pandemic, according to a survey conducted by Citibank Hong Kong.
Work-from-home arrangements and social-distancing measures led to changes in lifestyle and daily consumption habits, and around 48 percent of residents reduced their spending last year, Lawrence Li, head of cards and unsecured lending at Citibank Hong Kong, said at a news conference on Monday.
The spending habits of young people, aged 21 to 30, were affected the most by the pandemic, a survey found. They spent about HK$8,000 every month last year, 16 percent lower than in 2019
However, the survey indicated that residents have indulged more in their love for online spending, which rose over 10 percent year-on-year in 2020.
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The survey on consumer sentiment was conducted in March 2021, and polled 1,202 residents online, aged 21 to 60 with a monthly income of HK$12,000 or higher.
The spending habits of young people, aged 21 to 30, were affected the most by the pandemic. They spent about HK$8,000 every month last year, 16 percent lower than in 2019.
The significant reduction in spending by young people was mainly due to their excessive spending on non-essential items before the pandemic, Li said.
Overall, the pandemic has prompted local residents to become more cautious in their spending. More than 70 percent of respondents believe that their consumption would be more cautious and they have curbed some unnecessary expenses.
Forty-four percent of respondents said that even when the pandemic is over, they will think more carefully before buying non-necessities. Only 22 percent of interviewees said that they would be more relaxed about buying non-necessities in the post-pandemic period, indicating that they would buy what they like and can afford. Parents and middle-class sectors were the most cautious consumer groups, according to the survey.
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Li said that, as the pandemic in Hong Kong has been gradually brought under control and social-distancing measures eased in the first quarter of 2021, people were more willing to go out for shopping and dining. Citibank Hong Kong has recorded 50 percent more new credit card applications, which indicated that consumers’ confidence is rising.
As young people spent significantly less last year, Hong Kong is highly likely to see a strong rebound in consumption among young people this year, Li added.