(Fitch Ratings) Fitch Ratings has affirmed Israel's Long-Term Rating at "A+" with a Stable Outlook, noting its diversified, resilient and high value-added economy and strong external finances. The government has indicated it may no longer seek to give an automatic majority in the judicial appointment committee to the ruling coalition, and has dropped an initiative that would allow parliament to override Supreme Court decisions against legislation. Fitch considers the current measures are unlikely to trigger a material exodus of talent and capital in the high-tech sector. We project growth of about 3.1% of GDP in 2023 and 3.0% in 2024. Our base case assumes limited impact from the judicial changes beyond the protests' impact on consumption and a delay in some capital investment decisions. Growth will be supported by continued exports from the high tech and defense industries as well as strong population growth. Funds raised by the local high-tech sector have fallen this year. In our view, uncertainty generated by the judicial changes only partly explains this, with global trends accounting for a larger part, as investment was down in competing locations. The sector's diversification and maturity provide substantial resistance to shock.
2023-08-17 00:00:00Full ArticleBACK Visit the Daily Alert Archive