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Moody’s upgrades Israel’s outlook to positive, affirms A1 credit rating

16 11 6

Leading rating agency Moody’s upgraded Israel’s economic outlook from stable to positive on Friday, affirming the country’s credit rating as A1.

Moody’s cited Israel’s strong economic growth and the government’s “reform agenda” on challenges such as labor productivity and participation of under-represented communities in the workforce. Israel last earned a “positive” outlook from Moody’s in July 2018, which was later downgraded to “stable” in April 2020 when the COVID-19 pandemic started gaining pace in the country.

In 2021, Israel’s economy grew by 8.1%, surpassing forecasts and marking the highest financial growth rate recorded in Israel in 21 years, according to data published in February by the Central Bureau of Statistics.

According to the data, the fourth fiscal quarter of 2021 saw a staggering 16.6% growth in GDP, bringing the yearly average to 8.1%, the highest since 2000, when Israel’s growth rate stood at 8.4%.

The Bank of Israel had estimated that the growth rate would reach 6.5% in 2021. The Finance Ministry’s more optimistic estimations pointed to a 7.1% growth. The OECD in December said that the Israeli economy had beat all forecasts to rebound strongly in 2021, citing the country’s ongoing booster vaccination campaign, a recovering labor market, and a booming local tech sector.

The country’s annual inflation rate hit 3.5% in February, the highest since 2011, up from 3.1% in January, and above the central bank’s target of........

© The Times of Israel

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