In the US, the epicenter of the global financial crisis, holiday sales are estimated to have contracted by more than two per cent, its worst showing in decades. Year-end sales also faltered in Western Europe and Japan. Despite discounts and promotions, consumers were cautious about holiday spending. Given the trend of trading down, demand for luxury items decreased.

In contrast, sales results in the Chinese mainland were fairly encouraging, although economic moderation and increasing unemployment have cast a shadow over mainland consumption. Despite the slump in the stock and property markets, most middle class consumers were still capable of spending. Retail sales rose by 20.8 per cent in November, and by 21.9 per cent in the first 11 months of 2008, compared with the same period in 2007. The good news is expected to last, with the Lunar New Year around the corner.

In other parts of the emerging world, year-end sales varied. In Central and Eastern Europe, sales were strong in Russia and Poland. In Latin America, Brazil and Chile fared well.

"Given the continuing global financial crisis, prospects for Hong Kong's traditional markets are grim for 2009," HKTDC Assistant Chief Economist Daniel Poon said at today's press conference.

"Although there will be no decoupling from the world economic meltdown, the mainland looks to hold the best promise. Elsewhere, Russia and Poland are bright spots in Central and Eastern Europe, while Brazil and Chile show better potential in Latin America," said Mr Poon.

While the US will remain a bleak market for Hong Kong exporters, Mr Poon suggests that competitively priced products that are stylish, safe and environmentally friendly - an area in which Hong Kong exporters excel - may find buyers.