Fitch Ratings Agency said that adherence to the ceasefire agreement in Gaza will increase the likelihood of lower credit risks in the Middle East region in general, and the chances of Israel overcoming the financial and economic forecasts for 2025.
On its part, Moody's confirmed that the agreement reduces the risk of the conflict escalating and its repercussions extending to Iran, which may positively reflect on the stability of energy prices and global supply chains, especially in light of the Red Sea shipping crisis.
In a related context, the Israeli Ministry of Finance announced that total military spending in 2024 amounted to about 100 billion shekels ($28 billion), which led to an increase in government borrowing and an increase in the national debt burden. The public debt-to-GDP ratio rose to 69% by the end of last year, compared to 61.3% in 2023.
Follow the latest news on Google News
