Economic growth is still outpacing most advanced economies, which are forecast by the International Monetary Fund to grow an average 1.6% this year

The revised expected growth rate is close to the multi-year average

The IMF also noted that Israel's inflation rate will rise from 2.7% in 2010 to 3.4% in 2011 and fall back to 1.6% in 2012

As the IMF sees inflation in Israel reaching 2.7% this year after 2010 saw a 2.2% increase in the Consumer Price Index (CPI)

The economy grew higher than the 4% growht which was predicted and way above the OECD average of 2.3%

In a report released last week the IMF suggested that indirect taxes may need to be increased. The IMF noted that the challenge for Israel is to sustain growth and low inflation

India has jumped from eighth to second position as the favoured destination for Israeli exports in the first half of 2010, an increase of 102% compared to last year