The IMF predicts that Israel's GDP growth will reach 4.8% in 2011. The forecast is a full percentage point higher than the early prediction the IMF published in April, which saw GDP growth at 3.8%.

However, the IMF also predicts growth will slow to 3.2% in 2012. The predictions were published in the newly issued World Economic Outlook for September 2011.

The IMF sees Israel's inflation rate rising from 2.7% in 2010 to 3.4% in 2011 and falling to 1.6% in 2012. Unemployment is expected to fall from an average of 6.7% in 2010 to 5.9% in 2011 and 5.8% in 2012.