Posted 10/24/2023, 9:44:00 PM
S&P Downgrades Israel's Economic Outlook Due to Gaza Conflict
- S&P revised its outlook on Israel's debt to negative from stable, expects 5% contraction in the economy
- S&P reaffirmed Israel's AA- debt ratings
- S&P said the Israel-Hamas war in Gaza could spread more widely, impacting Israel's economy and security
- S&P forecasts a 5% contraction in Israel's economy in Q4 2022 before rebounding in early 2024
- Contraction due to security disruptions, reduced business activity, drafted reservists, shut tourism sector, and a confidence shock