Bank of Israel Governor Amir Yaron expressed confidence on Sunday that the country’s economy is strong and will be able to bounce back from the impact of the war. Yaron emphasized the importance of addressing the economic issues raised by Moody’s after the agency downgraded Israel’s sovereign credit rating. He mentioned that in order to restore confidence in the Israeli economy, the government and the Knesset need to take action to resolve the problems highlighted in the report.
Moody’s decision to downgrade Israel’s country rating to “A2” from A1, with a negative credit outlook, was based on perceived political and fiscal risks caused by the ongoing conflict with the Palestinian militant group, Hamas. The review for a potential downgrade began on Oct. 19.
Yaron also highlighted positive aspects of Israel’s economy, stating that it is built on solid and healthy economic foundations. He praised Israel for leading the world in innovation and technology fields. Despite this setback, he expressed confidence in Israel’s ability to recover from challenging times and quickly return to prosperity. He believes that Israel has successfully recovered from difficult times in the past and will do so again.