Fitch Ratings affirmed the long-term default rating of Israel’s foreign currency issuer at “A+” with a stable outlook. In explaining the decision, Fitch noted that Israel’s “A+” rating balances a diversified, high value-added economy, which has proven resilient in the face of the COVID-19 pandemic, strong external financing and strong institutional strength in the face of a high government debt/GDP ratio. High security risks.” Related Articles Israel’s fiscal deficit continues to narrow the upwardly revised first-quarter growth figures after the Israeli economy contracted 2.6% in 2020 due to the Covid crisis, and the rating agency expects 5.1% growth in 2021 and 5.7% growth in The economy has been more resilient to the shock of the pandemic than many of its peers, reflecting the strong performance of high-tech industries and early and rapid progress in vaccination,” said Fitch. Fitch forecasts that Israel will outperform average “A” GDP growth for each year from 2021 to 2023. On fiscal matters, Fitch sees Israel’s budget deficit shrinking to 7% of GDP in 2021 from 11.6 % in 2020. The rating agency sees the deficit shrinking further to 5% of GDP in 2022 and 3% in 2023. Fitch expects that the new coalition will approve the 2021 and 2022 budgets before the end of the year and that the debt-to-GDP ratio The total will stabilize in 2022. The rating agency explains that in order to improve its credit rating of Israel, the trend of reducing its government debt relative to GDP should continue. On the other hand, if the debt-to-GDP ratio will rise or if security risks cause Geopolitics has a serious long-term economic impact, it may adversely affect its rating.Published by Globes, Israel business news – en.globes.co.il – on July 30, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021
Fitch reaffirms Israel’s A+ rating, forecasts 5.5% growth in 2021
0 Comments