Standard & Poor’s Global lowered its outlook for the Israeli economy from stable to negative, amid the increasing severity of risks facing the economy due to the aggression on the Gaza Strip, warning of the negative repercussions of the continuation of the war.
The agency stated in its report that Israel’s credit expectations were reduced to negative amid the risks of expanding the war with the Palestinian resistance led by the Islamic Resistance Movement (agitation), which will have a worse impact on Israel’s economy.
The agency confirmed Israel’s rating at “AA Negative” (AA-), which is the fourth highest grade among the credit ratings provided by the agency to countries.
And last week, I put it Moody’s Investor Services Israel’s debt rating is under review for downgrade; While placed Fitch Agency The country’s credit rating is on negative watch, both indicating negative consequences due to the war.
Fitch said that the widespread escalation, in addition to the human casualties, could push Israel into significant additional military spending, the destruction of infrastructure, and a sustained change in consumer sentiment and investment.
“While a short-term conflict may have an impact on credit, the longer and more intense a military conflict is, the greater its impact on the effectiveness of policies, public finances and the economy,” Moody’s said earlier.
shrinkage
Standard & Poor’s expects Israel’s economy to contract by 5% in the fourth quarter of this year on a quarterly basis, amid security-related unrest and a decline in commercial activity.
She said that the call-up of a large number of reserve soldiers (more than 300,000 people), the cessation of foreign tourism and the broader confidence shock will also harm economic growth in the last three months of this year.
For the 19th day, the besieged Gaza Strip is subjected to intense Israeli air strikes that destroyed entire neighborhoods, as the Israeli army launched a military operation called “Iron Swords,” which led to the martyrdom of more than 6,055 Palestinians, most of them children and women, along with more than 16,000 wounded.
At dawn on October 7, the Palestinian resistance was launched, led by Al-Qassam Brigades practical “Al-Aqsa Flood”In response to the continuing attacks by Israeli forces and settlers against the Palestinian people, their property and holy sites, especially Al-Aqsa Mosque in occupied Jerusalem.
