That's according to the latest report from MasterCard SpendingPulse.
The report examined figures for the second quarter of 2021.
It found that total retail expenditure increased by 5.1% compared to the first quarter of 2021. The sector was greatly aided by the easing of pandemic restrictions in the second quarter.
The discretionary (ie non-essential) sector saw the greatest boost, growing 61% on the previous quarter. The entertainment sector grew by 21.3%. Spending on household goods rose by 20.6%.
With bricks and mortal retail stores reopening as COVID restrictions were lifted, online spending dropped by 2.6%.
Compared to the same period of 2020, retail spending grew by 17.1% in the capital.
The report also revealed figures for spending by overseas tourists. This was found to be up 25.6% on the previous quarter and up 184.4% on the same period of 2020.
"The extreme positive growth rates for overall retail sales were expected as we compare with the Covid-19 related restrictions of 2020," said Michael McNamara, Global Head of SpendingPulse, MasterCard. "From a sector perspective we are seeing spending rebalance with a return to the discretionary sector that was largely shut down over the past year."
