Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Israel's Central Bank Governor Reviews Country's Economy after Moody's Rating Downgrade

Sun 11 Feb 2024 | 11:05 PM
Moody's tower in New York
Moody's tower in New York
Taarek Refaat

Central Bank of Israel Governor Amir Yron claimed on Sunday that his country's economy is strong, indicating that it is capable of recovering from the repercussions of the fierce war on the Gaza Strip, according to what was reported by Sky News.

He called on his country's government to address the issues raised by Moody's after the agency lowered Israel's sovereign credit rating.

He continued: “In order to strengthen the confidence of markets and rating companies in the Israeli economy, it is important that the government and the Knesset work to address the economic issues raised in the report.”

He added that the economy “is based on solid and good economic foundations, and leads the world in the field of innovation and technology.”

He continued, “We knew how to recover from difficult times in the past and quickly return to prosperity, and Israel’s economy has the capacity to ensure that this happens as well.”

Since the Hamas attack on October 7, Yron has been urging the government to maintain financial discipline and reduce spending on goods not related to the retaliatory military campaign against the war in Gaza.

For the first time ever, Moody's lowered Israel's credit rating to "A2" from "A1", while keeping its credit outlook at negative, which means the possibility of lowering the rating again.

Moody's indicated that there are significant political and financial risks as a result of the war, adding, "Israel's budget deficit will be much larger than expected before the conflict."