Moody’s has issued a positive assessment of the Israeli economy, reaffirming the country’s A1 sovereign debt rating with a positive outlook.
The International credit rating agency‘s senior officer and the report’s author Evan Wohlmann said: “Israeli economic growth has outpaced most other advanced industrial countries over the past decade, driven by a strongly competitive high-tech export sector and a diversified economic base that now includes energy exports.”
Wohlmann added, “The development of the Leviathan gas field is likely to strengthen Israel’s net creditor position further.”
The report indicates, “it is one of only a handful of advanced countries that has a lower debt-to-GDP ratio now than before the global financial crisis.”
According to Moody’s, the country’s weakness is its susceptibility to political risks: the persistent geopolitical risks of escalation tension with Palestine.
As well as the risk at the current internal political situation in which extended to two election seasons and still failed to produce a new government. Those have prolonged political uncertainty and reform inertia, while also delaying more comprehensive efforts to address the widening budget deficit.
“An intensification of fiscal consolidation efforts following the formation of the next government that helps to maintain the debt-reduction gains seen over the past decade broadly would be credit positive.