Despite the economic ramifications of Operation Protective Edge, S&P believes Israel’s economy has remained stable.
Leading international financial rating agency Standard & Poor voted confidence in Israel’s economy on Sunday when it rated it as strong, noting that Operation Protective Edge’s impact on Israel’s fiscal viability was minor.
A temporary drop in tourism during the summer war with Hamas had negatively affected the economy.
According to S&P, Operation Protective Edge has resulted in only a modest weakening of Israel’s fiscal trajectory. Although Israel may temporarily reverse its fiscal consolidation, S&P expects the economy to remain stable and solid.
S&P left Israel’s fiscal rating at ‘A+/A-1’, stating that Israel’s fiscal outlook is promising and firm.
S&P noted Israel’s production of natural gas and its relatively flexible monetary framework as contributors to Israel’s economic prosperity.
Responsible Economic Policy
On Sunday morning, responding to S&P’s top rating for Israel’s economy, Prime Minister Benjamin Netanyahu opened the weekly cabinet meeting in Jerusalem by stating:
“This is the result of the responsible economic policy that we have been taking in recent years. We must continue to clarify to international markets that we intend to continue this responsible policy so that Israel will maintain its high credit rating. This has great influence on the stability and prosperity of our economy.”
Written by: United with Israel Staff