On Sunday, Bank of Israel Governor Amir Yaron stated that he believes the country’s economy is strong and will be able to bounce back from the impact of the war. Yaron emphasized the importance of addressing the economic issues raised by Moody’s after the agency downgraded Israel’s sovereign credit rating. He mentioned that in order to restore confidence in the Israeli economy, the government and the Knesset need to take action to resolve the problems highlighted in the report.
Yaron also highlighted the positive aspects of the Israeli economy, stating that it is built on solid and healthy economic foundations. He praised the country for leading the world in innovation and technology. Despite this, Moody’s decision to downgrade Israel’s country rating to “A2” from A1, with a negative credit outlook, was based on perceived political and fiscal risks caused by ongoing conflict with Palestinian militant group Hamas. Moody’s began reviewing a potential downgrade on Oct. 19.
Yaron expressed confidence that despite this setback, Israel has recovered from difficult times in past and believes it will do so again, as well as regain its former prosperity.