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Although there are risks from the European sovereign debt crisis and the “fiscal cliff” confronting the federal government, the U.S. economy is expected to expand over the next year, according to Bloomberg BNA’s midyear economic outlook.

This study, which includes analysis from 16 economists, finds that the unemployment rate is predicted to decline from the current 8.2 percent to 7.8 percent on average in 2013. The inflation rate is also expected to remain low, near 1.8 percent to 1.9 percent in 2012 and 2013. In fact, most study analysts believe Federal Reserve policymakers will keep its target interest rate at historic lows until at least the third quarter of 2014.

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