The S&P credit-rating agency commended the Israeli economy’s stability, as well as the measures taken by the Israeli government to reduce the cost of housing: “The effects of security threats on Israel’s economy will remain limited.”
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The international credit-rating agency S&P reaffirmed Israel’s A+ credit rating today (Friday), with a stable forecast for the future. The company commended the measures taken to lower the cost of housing and estimated that “the effects of security threats on Israel’s economy will remain limited.” Other credit-rating agencies have also commended Israel’s economy recently, with PITCH awarding it an A rating and Moody’s awarding it a rating of A1.
According to S&P’s announcement, the company’s analysts expect the new Israeli government to maintain its stable fiscal policy, as well as a stable government debt. “The credit-rating company notes the government’s efforts in the field of housing,” the Israeli Finance Ministry stated. “According to the company’s announcement, the government is implementing a series of steps aimed at freeing lands for development, reducing bureaucracy in order to accelerate the process of approving construction, and changing criteria for construction tenders.” However, S&P also estimated that the government’s actions will not be able to fully solve the housing shortage.
S&P’s report also noted that the Israeli economy is diverse and thriving, and is characterized by a strong export industry, strong external accounts and a flexible monetary framework. The main constraints facing the Israeli economy, according to the company, are its high debt, as well as geo-political threats and their financial effects.