LOS ANGELES (AP) — A new economic report shows a rise in business investment and exports will help drive California's economy in the coming year, while unemployment continues to drop.

The UCLA Anderson Forecast released Wednesday shows that the Golden State is expected to capture a large proportion of the gains as the U.S. economy, boosted by auto sales and housing starts, is poised for real growth in 2013.

The report says the nation's gross domestic product is expected to grow 1.9 percent this year and 2.8 percent in 2014.

Employment growth is expected to remain steady in California, but the yearly growth rate slowed to 1.6 percent in December. The forecast say unemployment in California will fall this year and average 9.6 percent and could drop to 8.4 percent next year.