On Sunday, Bank of Israel Governor Amir Yaron stated that he believes the country’s economy is strong and will be able to recover from the impact of the war. Yaron emphasized the importance of addressing the economic issues raised by Moody’s after the agency downgraded Israel’s sovereign credit rating.
Moody’s decision to downgrade Israel’s country rating to “A2” from A1, with a negative credit outlook, was based on perceived political and fiscal risks caused by the ongoing conflict with the Palestinian militant group, Hamas. The review for a potential downgrade began on Oct. 19. Despite this, Yaron expressed confidence that the Israeli economy has the strength to overcome this challenging period and return to its former prosperity. He noted that the country has successfully recovered from difficult times in the past and believes that it will be able to do so again.
Yaron also highlighted the positive aspects of the Israeli economy, stating that it is built on solid and healthy economic foundations. He praised the country for leading the world in innovation and technology. He expressed confidence in the ability of the Israeli economy to recover from challenging times and quickly return to prosperity.
To restore confidence in