By Admin 
Israel News: Moody’s Investors Service warned on Tuesday that the growing political stress in Israel and the ongoing fight in Gaza is weakening the country’s economic and financial stability. Moody’s said in its report that uncertainty about Israel’s safety and economic development has increased more than ever. & Nbsp;
There is a big threat to the high-tech sector of the country as it is an important part of the Israeli economy and gives a big tax revenue to the government. Apart from this, pressure on the financial situation of the country is also increasing due to the controversial judicial reforms and war of the government.
Israel’s difficulties are increasing
Moody’s said that the deteriorating situation can affect the Israeli economy and the financial situation of the government and the institutional system of the country can also be weak. Last year, Fitch and Moody’s had reduced the credit rating of Israel and warned that it could be further downed in future. In Tuesday’s report, Moody’s said that the rating of Israel is still threatened and if the economic situation does not improve, then there may be further decline.
The rating agency has expressed concern about Israel’s economic challenges. The report said that Israel is facing serious political and security risks. The political system of the country is also very divided, which is making it difficult to implement the policies of the government. Apart from this, economic inequality and social stress are increasing due to low labor participation of religious minorities. & Nbsp;
was reduced rating
In September, Moody’s reduced the credit rating of Israel to BAA1 from A2. The reason for this was explained for the weakening quality of government institutions and increasing expenses during the war. Due to reduced credit rating, taking loans for government, businesses and common people becomes expensive. Prime Minister Benjamin Netanyahu’s government, including Finance Minister Bezallal Smotrich, misunderstood Moody’s report and alleged that the rating agency is deliberately showing the position of Israel.
In September 2023, Prime Minister Benjamin Netanyahu met the representatives of Moody’s and told them that the rest of the provisions of judicial reform would be implemented only when he will get widespread public support.