Smotrich on lowering credit rating forecast: "Not a big drama, economists not experts on the constitution" (Knesset channel)
About a month after Moody's lowered Israel's credit rating horizon from positive (advancing toward an increase) to stable (not expected to rise under these conditions), it is now the S&P rating agency's turn to decide on Israel's credit horizon. But unlike the International Monetary Fund and Moody's, which addressed the upheaval in the economy following the proposed changes in the legal system, S&P left Israel's rating unchanged, and left its rating forecast stable.
As noted, earlier this week the International Monetary Fund published a report stating that it will cut its economic growth forecast in Israel in 2023 to 2.5 percent, instead of 2.9 percent: "The ongoing uncertainty surrounding judicial reform poses a notable negative risk to growth. In the absence of the emergence of a politically viable and sustainable solution, persistent uncertainty could significantly raise the cost of risk in the economy, worsen financial conditions, and halt investment and consumption, with potential implications for growth, even in the long term," the report said.
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