Israel's GDP will grow by 5% in 2011, compared with 4.8% in 2010, according to predictions by the Central Bureau of Statistics reported today in "Selected Data from the Statistical Abstract for 2011".

Israel's growth rate this year is much higher the average growth rate of 2.3% in the OECD. The Central Bureau of Statistics forecast is also higher than the Bank of Israel forecast of 4.7% growth.

More importantly, the Central Bureau of Statistics predicts business product growth of 5.7% in 2011, up from 4.8% in 2010. Analysis of export data shows that diamond exports will grow by 20% and industrial exports will grow by 5%. There will be no growth in tourist services (a services export).

Consumption growth will slow to 5.1% in 2011 from 5.3% in 2010. The standard of living will rise by 3%. The Central Bureau of Statistics predicts 13% growth in private consumption per capita of durable goods (vehicles, furniture, and appliances), considered a good measure of the standard of living, and a better measure of the standard of living than consumption of non-durable goods (such as food and medicines), which are more essential.

Public consumption growth has risen over the past four years from 1.9% in 2008 to a projected 3.4% in 2011.