What: Hong Kong’s retail sales plummeted 13.8% in March due to the string of heavy virus restrictions.

Why it is important: The February-March period was the first time since the end of 2020-into-2021 that retail sales declined for two straight months.

The city has recently imposed strict social curbs — including a ban on dining in restaurants after 6 p.m. and closing gyms and beauty salons — to contain a deadly Covid outbreak.

Things are now looking up for Hong Kong, which is accelerating plans to ease curbs by reopening beaches and swimming pools and extending dining in-hours, among other measures.

The government has started handing out consumption vouchers to help growth. A similar program last year helped boost monthly retail sales by double digits.

The damage to the economy in the first quarter was still far deeper than many economists anticipated, suggesting a potentially lengthy road to recovery.

Hong Kong’s retail sales continue to fall