Moody’s cuts Israel’s 2026 growth estimate on tenuous ceasefire deals
Israel’s 2026 economic growth will be lower than previously forecast and its debt higher, Moody’s Ratings said, citing elevated geopolitical risks and fragile ceasefire agreements with Iran and militant groups Hezbollah and Hamas.“Although the Israeli economy has demonstrated its resilience to geopolitical shocks in recent years, the fragile security environment continues to pose risks to the economic and fiscal outlook,” Moody’s said in a report on Wednesday.
In January, Moody’s changed its outlook to stable from negative saying that Israel’s exposure to geopolitical risk after a Gaza ceasefire had materially eased from very high levels, there by reducing the risk of a further weakening of Israel’s sovereign credit profile.
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