CBS forecasts economy to grow 3.5% in 2012

The Central Bureau of Statistics (CBS) publish last week a forecast indicating that Israel's economy is expected to grow by 3.5% in 2012.
 
The CBS's previous forecast noted mere 3% growth in the first half of the year. Data compiled by CBS in the past eight months point to continued growth on all parameters.
 
The GDP of the business sector is expected to grow by 3.4%, private consumption by 2.8%, public consumption by 3.8%, the investment in the economic industries is expected to rise 2.5% (opening new companies, buying equipment, etc), construction for housing purposes is expected to increase by 5%, and exports (excluding diamonds) – by 6.3%.
 
Such growth would enable the government to meet its debt-GDP reduction target in the coming year. Nevertheless the forecast points to a slowdown in Israel's growth rate compared to the past two years.