Data from Standard & Poor’s Global Market Intelligence showed that five-year credit risk swaps for Israel jumped by 10 basis points from their level at the close yesterday, Tuesday, to record 160 basis points, the highest level since November 2012, according to Reuters.
Agency was reduced Standard & Poor’s Global Credit Ratings assigns Israel’s long-term foreign and local currency sovereign credit rating from ‘A+’ to ‘A’ with a negative outlook.
The negative outlook reflects risks to growth Israeli economy And public finances and the balance of payments. The credit rating agency also expected a delay in economic recovery in Israel, and reduced its growth expectations to 0 percent in 2024 and 2.2 percent in 2025, in addition to expectations of a widening of the fiscal deficit in the short and medium term with an increase in defense-related spending.
The ongoing war since last October led to an increase in the budget deficit in Israel To about 8.3 percent, in addition to expectations that the debt ratio of GDP will rise to about 70 percent in 2024, and 72 percent in 2025.
