Wednesday, 17 April 2024
WorldIsrael's economic crisis

Israel’s economic crisis

Tel Aviv: The cost of war and a sharp decline in financial transactions are driving Israel into a financial crisis. International credit agency Moody’s on Friday downgraded Israel’s sovereign credit rating from A1 to A2. The report is likely to lower further. Bank of Israel Governor Amir Yaron called on the government and parliament to intervene to recover the financial system from the effects of the war and to regain the credibility of the market and credit agencies.

He added that the economy is fundamentally strong and has weathered such difficult phases in the past. As the war dragged on, the Red Sea shipping crisis took its toll on Israel’s economy. After October 7, more than five lakh citizens left the country.

Commercial transactions and financial transactions have come down sharply. Due to the frequent rockets and accompanying sirens, people are less likely to come out. Schools are not open. Calls for a boycott of Israeli products also hit the economy.

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