According to Bloomberg BNA’s Midyear Economic Outlook, the U.S. economy would expand throughout the remainder of 2012 and over the next year despite the spectacle of the European debt crisis. Of the 16 economists surveyed for the report, the overall consensus was of a declining unemployment rate (down to an average of 7.8 percent in 2013). Inflation is also forecast to remain low (1.8 percent to 1.9 percent) throughout 2012 and 2013. Interest rates are also expected to remain at their historic low rates until at least Q3 2014.
A summary of the forecast for 2013 U.S. economy follows:
• The real gross domestic product is expected to rise by 2.5 percent in 2013.
• Average employment gains are anticipated to average 153,000 jobs per month during the first half of this year.
• The consumer price index will experience an increase of 1.9 percent in 2013.
• The Federal Funds Rate is predicted to experience its first increase in Q4 2014.