OECD predicts Israel's economy will grow 5.4% in 2011

The OECD expects Israel's economy to grow 5.4% in 2011 before slowing to 4.7% in 2012 due to rising labor-supply constraints and more interest rate hikes. In November, it had penciled in growth nearer four percent for this year.

It said recent political developments in the region were a risk to the economy. The report also said fiscal goals would probably be achieved. (Reuters)