• Sat. Feb 24th, 2024

Israel’s Credit Rating Downgraded Due to Gaza Conflict: A First in History

ByEditor

Feb 10, 2024
Moody’s Downgrades Israel’s Economy, Signaling a Bleak Future

Moody’s Investors Service has downgraded Israel’s credit rating for the first time ever, citing the ongoing conflict in Gaza as the main reason. The war, which has been going on for over 127 days, has resulted in devastating consequences for both Palestinians and Israelis. Prime Minister Benjamin Netanyahu insists that Israel will win the war, but the Palestinian Resistance has caused significant damage to Israeli military vehicles and soldiers. The conflict has cost the Israeli government an astronomical amount of $18 billion, with daily costs reaching $220 million. As a result of this material increase in political risk, Moody’s downgraded Israel’s credit rating to A2, with a negative outlook. This is a significant development for Israel, a nation that has always boasted about its economic strength. However, it is important to note that this decision was made solely based on the impact of the ongoing war and not on Israel’s economy itself.

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