Bank of Israel Governor Amir Yaron stated on Sunday that he believes the country’s economy is strong and will be able to bounce back from the impact of the war. Despite Moody’s decision to downgrade Israel’s country rating to “A2” from A1, with a negative credit outlook, Yaron emphasized the importance of addressing the economic issues raised by the agency.
Yaron 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. He expressed confidence in the ability of the Israeli economy to recover from challenging times and quickly return to prosperity.
The downgrade was based on perceived political and fiscal risks caused by ongoing conflict with Palestinian militant group Hamas. Moody’s began reviewing for potential downgrade on Oct 19th. However, Yaron expressed confidence that Israel has overcome difficult times in past and will do so again.
In order to restore confidence in Israeli economy, Yaron emphasized that government and Knesset need to take action to resolve issues highlighted in report by Moody’s. The downgrading of Israel’s sovereign credit rating is a concern for many investors as it signals an increased risk associated with investing in Israeli assets. However, Yaron believes that Israel has strong fundamentals which will enable it to weather this challenging period and regain its former prosperity