Moody’s Downgrades Israel’s Economy, Forecasting Bleak Future

Israel’s Credit Rating Downgraded: A Look at the Economic Consequences of Gaza Conflict

Moody’s Investor Service downgraded Israel’s credit rating to A2, the sixth-highest investment grade, due to its ongoing conflict with Gaza. This is the first time Israel has had its credit rating downgraded, which cuts its debt burden higher than projected before the conflict.

The outlook for Israel’s economy has also been changed to negative by Bloomberg. According to Moody’s, the war and its aftermath will increase political risk for Israel while weakening its executive and legislative institutions as well as its fiscal strength. The conflict has resulted in extensive casualties and destruction on both sides, with the cost to the Israeli government estimated at $18 billion.

Prime Minister Benjamin Netanyahu downplayed the decision, claiming that Israel’s economy is strong. However, the ongoing war shows no sign of ending, taking a severe toll on Israel’s economy. Despite Netanyahu’s claims, it is clear that the war is taking a toll on Israel’s economy.

Leave a Reply

Tottenham manager Postecoglou praises the ‘world-class’ Son Previous post Tottenham Boss Praises World-Class Star Son Heung-min after Dramatic Win
Warning from Saudi Arabia: Israeli Ground Incursion into Rafah could have severe consequences Next post Saudi Arabia Warns Israel: Military Action in Rafah Could Lead to Humanitarian Disaster