Fitch, the international credit rating agency, provides a hopeful outlook on the Israeli economy post-COVID-19; While the GDP will shrink for 2020, Fitch expects it to grow by 5% in 2021.
With so much financial uncertainty in the midst and soon-to-be aftermath of the global pandemic of COVID-19, Fitch has given a hopeful outline regarding what they believe Israel’s economy will look like over the next two years. Fitch is upholding Israel’s Long-Term Foreign-Currency Issuer Default Rating (IDR), which is an A+.
Israel finished 2019 with record numbers, which will certainly take a hit due to this crisis. That being said, while Fitch expects significant changes to the GDP in 2020, and perhaps early 2021, they anticipate at least a 5% growth overall in 2021 for the Jewish State. Additionally, they expect Israel’s annual growth to increase by approximately 3%.
According to Israel’s accountant general, Rony Hizkiyahu, “The affirmation of the rating at a time of unprecedented global crisis indicates the company’s confidence in the Israeli economy and brings home the need to maintain fiscal discipline even as we deal with the consequences of the coronavirus pandemic in Israel.”
Moshe Kahlon, Israel’s finance minister, added to the positive feedback, saying that this “confirmation of Israel’s credit rating indicates the great confidence of the global economic system that the State of Israel will succeed in the global crisis following the Coronavirus. This is what gives hope to Israeli citizens that the Israeli economy will return to its economic strength as it was on the eve of the crisis.”
