Israel's economy passed through 2011 with flying colors. The Central Bureau of Statistics reported on Friday that growth exceeded expectations to reach 4.8 percent, higher than the OECD average, with GDP per capita reaching an all-time high of NIS 111,000 ($29,148), twice as high as the OECD average. According to the bureau, which monitors economic indicators ranging from inflation to expenditure and employment levels, Israel's economy did not slide into recession as some experts had originally feared. It further reported that Israelis' standard of living continued to grow over the past year, and private consumption per capita -- a crucial indicator of economic health -- rose by 2.1%. The Israeli economy, which at 4.8% growth outperformed all other developed nations, has not deviated from the growth trajectory of the previous year. The expansion in economic activity for 2011 was 2.8 times the U.S. rate and 2.5 times the average for OECD member states. In 2010, Israel joined the Paris-based organization, comprising the world's top economies, following more than three years of negotiations. Economists expect the economy to grow by more than 3% in 2012. This represents a slightly more optimistic economic outlook than the Bank of Israel forecast from earlier this week, which predicted a rate of 2.8%. Private spending on consumer goods increased by 5.6% in 2011, with sales of household electronic appliances registering an increase of 16.9%, further indicating a rise in the standard of living. Investments in real estate and in construction-related ventures, coupled with the volume of import activity, suggest continued growth in 2012. The only disappointing statistic in the report reflected Israeli export activity, which grew by a meager 4.5%, a much lower pace than the 13.4% expansion in 2010. Speaking with Army Radio on Thursday, Bank of Israel Governor Stanley Fischer spoke in an upbeat tone about 2012, despite the gloomy state of the world economy and the potential ripple effect on Israel. According to Fischer, who was formerly the World Bank's chief economist, "If Europe and the U.S. avert a catastrophe, 2012 might actually see a nice growth rate that matches the average for the past 30 years." The general consensus among Israeli economists is that Israel will experience some kind of slowdown next year.
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