April 3, 2016 | International credit rating agency Moody’s, the most conservative of the three major international rating agencies, today confirmed Israel’s A1 rating with a stable outlook. In the announcement accompanying its rating, Moody’s economists explained that the rating was supported by economic flexibility and the great effectiveness of the government, which is constantly working to improve Israel’s debt and financing figures. Moody’s describes Israel’s economy as very strong, with growth supported primarily by high-tech exports. Writing about this sector, Moody’s economists say that it rests on a highly educated population and high R&D expenditure. Israel’s debt is low by international standards, and Israel dealt effectively with the crisis that engulfed the world’s economies.The agency also states that were it not for Israel’s geopolitical risks, its credit rating would be higher. However, Moody’s forecasts 2.9% economic growth and 0.6% inflation in 2016, compared with 2.5% growth and minus 1% inflation in 2015.
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