In recent days, one of the major rating agencies, Fitch, has published its rating of the Israeli economy. The outlook for Israel is mixed.
The ‘war of hesitation’, caused on the one hand by what is arguably the weakest, most cowardly government in the country, and on the other by the unseen and unbelievable obstruction by the deep state, left NGOs (allegedly but likely funded by left US sources like the USAID) and media.
An obstruction by the Israeli left that some pundits now classify as a threat to the state; some even say that Israel is not a democracy, but a juristocracy.
The Israeli economy is currently assessed by the three major international credit rating agencies – Moody’s Investors Service, Standard & Poor’s (S&P) Global Ratings, and Fitch Ratings – with ratings that reflect a degree of concern regarding the nation’s financial stability and growth prospects.
While all three agencies acknowledge the underlying strengths of the Israeli economy, they have each assigned a negative outlook to their respective ratings.
Moody’s rates Israel at Baa1, the lowest among the three, followed by S&P and Fitch, both assigning a rating of A.
Fitch Ratings affirmed Israel’s long-term sovereign credit rating at A with a negative outlook on Monday, March 31, 2025. This decision followed a previous downgrade by Fitch in August 2024. Fitch’s affirmation in early 2025, while maintaining a negative outlook, suggests a slightly different near-term perspective compared to the downgrades by Moody’s and S&P in late 2024.
The consistent negative outlook across these agencies underscores a shared apprehension about the future trajectory of the Israeli economy, primarily driven by persistent geopolitical risks, domestic political and governance challenges, and the resulting fiscal pressures.
How to mitigate or even turn the tables? To win the war quickly and uncontested, and dismantle the deep state to restore Israel as the democratic, Jewish state.