U.S. credit rating agency Fitch downgraded Israel’s credit ratings from A+ to A due to ongoing conflicts in Gaza and geopolitical risks. The agency predicts a budget deficit of 7.8 percent of GDP in 2024 and debt exceeding 70 percent of GDP. The conflict could prolong into 2025, leading to high military spending and economic disruptions.
The report emphasizes the potential for further deterioration in Israel’s credit metrics as a result of ongoing tensions and the risk of escalation with regional powers. The conflict’s impact on infrastructure, economic activity, and investment could worsen the country’s financial standing.
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