Credit rating companies warn of excessive spending at the expense of the future

Credit rating agency Modis announced lowering Israel's credit rating forecast to "neutral" instead of "positive." It should be emphasized that the current rating was not downgraded and that Modi's complimented Israel's growth potential and its ability to deal with the Corona crisis. 

Moody's expresses concern over the expected double-digit deficit rise as a result of the government's bailout programs, as well as the "deterioration in fiscal performance" that was reflected in excessive budgetary spending before the crisis broke out.

Despite Modi's warning, the trend in public spending may even increase with the establishment of the new government. Yesterday, the Minister of Economy and Industry, MK Amir Peretz (Labor), said that he supported a dramatic expansion of the number of those eligible for unemployment benefits, as well as extending the eligibility period. 

At the same time, Peretz marked the field of imports as the enemy of the Israeli economy. According to the former Histadrut chairman, "as soon as I enter office, I intend to review Israel's import agreements, and I will do everything so that local produce is prioritized." It should be noted that, contrary to Peretz's position, the Bank of Israel has recently stated that To Israel longer and more expensive than the OECD countries. "

The OECD recommended that Israel remove import barriers to ease the cost of living, and the chief economist at the Ministry of Finance stated that in terms of purchasing power, the level of food prices in Israel is 25% higher than the average in the OECD countries.

In the process, President Trump has signed another $ 1.5 trillion aid program for small businesses. So far, the White House's budget spending is about $ 3 trillion - an unprecedented amount of about 14% of total U.S. GDP in 2019. Trump's plan has encouraged markets, and Wall Street's trading week closed slightly on Tuesday in all indices Up to a rate of 1.65%.

However, the Dow Jones saw a weekly decline, for the first time in three weeks, at about 2%. Oil recorded its hardest week in history with a 32% plunge, but it is recovering with increases in WTI (about $ 17 a barrel) and Benart (21.65). Facebook shares rose 2.5% after announcing the launch of a video platform to 50 participants.