to report «iusnews»; The aggression on the Gaza Strip seems to be tightening the strain on the Israeli economy, causing the government to sell bonds in close to all-time-high numbers, Bloomberg reported citing anonymous financial officials.
Pressure on Israel’s budget increased heavily after Moody’s Investors Service dropped Israel’s credit rating from A1 to A2 as well as lowering its outlook to ‘Negative’, citing potential escalations with Lebanon’s Hezbollah on Israel’s Northern parts as the reason for the downgrade, with Prime Minister Benjamin Netanyahu claiming the decision is not a reflection of Israel’s economic situation.
Israel Business Forum, in the representation of the largest 200 companies in Israel, commented that the credit’s negative outlook is a “negative development”, adding that the pressure has been unprecedented for 36 years, despite multiple wars, stating that Moody’s decisions are sturdy information that Israel’s 2024 budget proposal is not balanced not focused on recovering the economy.
Bloomberg states that Israel is headed for one of its worst budget deficits this century as the prices rise, adding that according to their official sources, who say that Israel’s increasing military spending is worrying, the government plans to issue more debt in 2024 than it did in any previous year except 2020 when it had to borrow and spend excessively to deal with the consequences of the coronavirus outbreak and lockdowns, making the total debt reach around 210 billion shekels ($58 billion).
