S&P credit ratings agency
S&P credit ratings agencyBrendan McDermid/Reuters

The S&P credit rating company on Monday evening published a report on Israel's credit rating in the wake of the war. The report follows S&P’s statement from October 25, in which the company lowered Israel's credit outlook from “stable” to “negative”.

The company said in Monday’s report that Israel’s GDP in the fourth quarter of 2023 is expected to shrink by 5% due to the war, and the company expects Israel's growth to be 1.5% in 2023 and 0.5% in 2024, due to the effects of the war on the economy.

The company expects an average deficit of 5.3% of GDP in 2023 and 2024, compared to 2.3% of GDP in the pre-war forecast. S&P also stated that, in its opinion, Israel has a number of cushions that should help it mitigate the immediate fiscal impact of the war.

S&P considers Israel's balance of payments, as well as the flexibility of Israel's monetary policy, as key strengths for the credit rating.