Oct. 17 (Bloomberg) -- The Bank of Israel said today that based on fiscal developments in the first eight months of this year its forecast for the 2011 budget deficit stands at close to 3 percent of the gross domestic product, which is within the budget framework.

The central bank said in an e-mailed report that in the months May through August, an accelerated upward trend in investment began to level off, a possible sign that producers may no longer see any need for major production expansion given the expected economic slowdown.

To contact the reporter on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net

To contact the editor responsible for this story: Susan Lerner at slerner2@bloomberg.net