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Israel’s Economy

Fitch Affirms Israel’s A+ Rating with Stable Outlook.

On August 1, 2022, Fitch ratings agency reaffirmed Israel’s A+ rating with a stable outlook, noting the country’s economic resilience and an expected reduction of the fiscal deficit of 4.9% by the end of this year from 2021. Fitch also stated “Israel's 'A+' rating balances a diversified, resilient and high value-added economy, strong external finances and solid institutional strength,” adding “Israel's reliance on domestic gas production provides some insulation from the global commodity price shock and demand for its export products remains strong.” Additionally, Fitch noted investment in the high-tech sector to remain robust, highlighting, “We project foreign exchange reserves to reach USD215 billion at end-2022…and Israel's net external creditor position to continue to improve to about 49% of GDP.” (*Israel bonds are not rated.)

Standard & Poor's (S&P) affirms Israel’s AA- rating, citing resilient economy despite security risks

Standard and Poor’s (S&P*), global credit rating agency, has kept Israel’s favorable rating unchanged at AA- with a “stable” outlook, the Finance Ministry stated May 14, 2022, citing the company’s announcement released on May 12. S&P said it expects the Israeli economy to grow at a rate of 5.5% in 2022, following growth of over 8% in 2021, which surpassed forecasts and marked the highest financial growth rate recorded in Israel in 21 years, according to data published in February 2022 by the Central Bureau of Statistics.

The agency cited Israel’s strong economic performance in the past year, a robust economy, and
fiscal outturns that helped “net general government debt fall below its pre-pandemic level more quickly,” it highlighted in the announcement. S&P noted Israel’s positive fiscal performance and a strong tech sector, which make up a resilient economy. (*Israel bonds are not rated.)


Fitch* affirms Israel’s A+ rating, citing strong 2021 economic performance.

On February 16, 2022, Fitch ratings agency reaffirmed Israel’s A+ rating with a stable outlook, noting the country’s strong economic performance and a reduction of the fiscal deficit in 2021. Fitch also stated Israel’s economy rebounded strongly “by about 6.5% in 2021 due to the removal of COVID-19-related restrictions and a strong rise in private consumption.” Additionally, on February 16 Israel’s Central Bureau of Statistics said Israel’s economy grew by 8.1% in 2021, surpassing previous forecasts and marking the highest financial growth rate recorded in Israel in 21 years. According to CBS 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%. (*Israel bonds are not rated.)


Fitch* commends Israel’s budget approval, stating Israel’s financial position benefited this year from its strong economic rebound, the gradual removal of pandemic restrictions, and particularly strong fiscal revenues from the hi-tech sector.

The ratings agency issued a statement on November 11, 2021 noting that the budget “reduces political uncertainty and potential risks to the public finances, affirming the government’s capacity to advance legislation... in line with our expectations when we affirmed the sovereign rating at ‘A+’ with a Stable Outlook in July 2021.” Israel also currently has a Stable AA- rating from S&P Global Ratings, and a Stable A1 rating from Moody’s. Take part in the 70-year legacy of achievement of Israel Bonds by investing online at israelbonds.com. (*Israel bonds are not rated.)


Israel's economic resilience praised

Israel Bonds, founded 70 years ago to strengthen Israel’s economy, proudly notes the latest assessment of Israel from Fitch Ratings*, which, in its July 29, 2021 report, observed, “The economy has been more resilient to the pandemic shock than many rating peers, reflecting the strong performance of high-tech industries and the early and fast progress in vaccination.” The word “resilient” appears numerous times throughout the assessment, highlighting the fact that Israel’s economy is well-positioned to perpetuate its positive momentum. Become a stakeholder in Israel’s economy – invest online at israelbonds.com. (*Israel bonds are not rated)


Moody’s affirms ‘stable’ outlook for Israel despite Hamas conflicts

In a May 19, 2021 report, Moody’s* affirmed Israel’s ‘stable’ outlook, stating, “Given the long- standing resilience of the Israeli economy to geopolitical developments, we expect the heightened conflict to have only a modest impact on the country’s economic recovery from the pandemic and on the government’s near-term fiscal metrics.” The report added, referencing Israel bonds, “Israel's deep and highly developed domestic market as well as exceptional access to external markets – also through an active diaspora bond programme – will support debt affordability.” (*Israel bonds are not rated.)


Standard & Poor’s (S&P) affirms Israel’s ‘stable’ outlook and strong credit rating

In a May 14, 2021 report, Global ratings agency S&P* affirmed its long-term sovereign credit rating on Israel at “AA-/A-1+” and maintained its outlook at “stable,” despite security and political risks escalating sharply in the last few days. The report added, “The combination of a very effective and swift COVID-19 vaccination campaign, strong technology sector performance and rising gas exports should still underpin the country’s GDP growth of 5% in 2021.” (*Israel bonds are not rated.)


Standard & Poor's (S&P) maintains Israel’s strong AA- credit rating, despite the global
COVID-19 pandemic’s effects

Standard and Poor’s (S&P*), the global credit rating company, has kept Israel’s credit rating unchanged at its high AA- level with a stable outlook, despite the COVID-19 crisis that the country is experiencing, the company announced March 30, 2021.
 
The agency also said it expects growth to recover soon and lauded Israel for having sound debt policy, which it said continues to justify its rating of AA-/Stable/A-1+. (*Israel bonds are not rated.)