Moody's International Credit Rating Agency published its annual report on the Israeli economy last week, saying among other things that "Israel's A1 sovereign rating and stable outlook are underpinned by its resilient growth model and effective government."
Moody’s maintained Israel’s previous A1 stable outlook. Moody's has, however, warned on Israel's slowing growth and higher defense spending. Economic growth, entrepreneurial dynamism, and a stable political system ensured that Israel would remain a good risk for investors, the agency said. A1 is among Moody’s highest ratings.
Key to Israel's economic dynamism is a high-tech export sector that benefits from the country's well-educated, relatively young population, as well as one of the highest levels of per capita investment in research and development.”
The report was another vote of confidence in the Israeli economy following the release of a similar statement by ratings agency S&P earlier this month.
Moody's added, "Israeli growth started to slow this year even before the latest conflict with Hamas in Gaza, mainly because of the negative impact on exports of a steeply appreciating currency. The Gaza conflict will put a significant dent in third quarter growth, further weighing on the overall forecast for 2014."
