The OECD predicted that the rise in Israeli consumer prices would slow to 1.7% in 2010 from 3.3% last year, but would speed up again in 2011
The OECD predicted last Wednesday that new member Israel was expected to enjoy healthy 3.8% economic growth this year, with a fall in inflation in the near term.
The OECD's Economic Outlook report noted that recovery from Israel's relatively milddownturn was underway, and growth should be close to potential by the end of 2011.
The OECD predicts that Israel will achieve 3.8% GDP growth in 2010, and achieve gross domestic product (GDP) of 4.2% in 2011.
The OECD's estimates are higher that the growth forecasts of the Bank of Israel of 3.7% GDP growth in 2010 and 4% growth in 2011. Last week, the Central Bureau of Statistics reported that Israel's annualized growth rate slowed to 3.3% in the first quarter of 2010 from 4.8% in the fourth quarter of 2009.The OECD also predicts that inflation in Israel will move back toward the upper limit of the government's 1-3% target range in 2011. Israel's GDP grew by 0.7% in 2009, compared to an OECD average of minus 3.3%.
The OECD predicted that the rise in Israeli consumer prices would slow to 1.7% in 2010 from 3.3% last year, but would speed up again in 2011 with a 2.6% increase.
Israeli Prime Minister Benjamin Netanyahu formally accepted the invitation to join the Organization for Economic Cooperation and Development at its Paris headquarters last Thursday.