In a move that underscores the economic ripple effects of geopolitical tensions, credit rating agency Fitch has downgraded Israel’s credit score from A+ to A, citing risks tied to the ongoing Gaza conflict. The agency warned that the situation could drag on until 2025, with ‘significant additional military spending’ and disruptions to tourism and construction sectors. 💥
Fitch’s report highlights Israel’s projected budget deficit of 7.8% of GDP in 2024 and warns that public debt could stay above 70% of GDP for years. The agency also flagged rising risks of a broader regional conflict, which could further strain the economy. ‘Human losses and infrastructure destruction may lead to a deeper credit deterioration,’ the report stressed. 💸
Young professionals and investors, take note: Fitch’s outlook remains ‘negative’, signaling more turbulence ahead. This downgrade adds pressure on Israel’s economic strategy amid mounting military costs and slowed growth—a stark reminder of how political instability can shake global markets. 🌍📊
