Could Hong Kong's GDP grow to 2.6% in 2015?

Even unemployment rate is threatening to rise.

It has been forecast that 2015 GDP growth will come in at 2.6% – a modest increase from the 2.1% growth forecast for 2014.

According to a research report from Hang Seng Bank, with the economy operating well below its potential level, the unemployment rate is expected to move a tad higher from 3.3% in 2014.

This is compared to 3.5% in 2015.

Here's more from Hang Seng Bank:

Looking at near-term growth prospects, if unexpected economic or social issues arise in Hong Kong, the realisation of risk factors such as tighter credit conditions or an economic slowdown on the Mainland would result in an anemic near-term growth profile for our city.

We do not see much chance of a stellar reacceleration in growth for the Hong Kong economy over the next 12 months.

Despite that, it is important not to lose sight of other supportive factors that may boost Hong Kong’s growth going forward. The tailwinds from stronger demand in the US, which remains the biggest end-demand market for Hong Kong's exports, and the continuing health of the household balance sheet could help to fight against the headwinds.