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Originally published by Capital Businessbusiness
July 16, 2026
2h ago
Moody’s cuts Israel’s 2026 growth forecast to 3.7pc amid security risks
The agency's new review said the lower forecast reflects the lingering economic fallout from the security situation, even as recent de-escalation agreements among warring parties in the regional conflict have reduced immediate risks...
✨ Key Highlights
Global rating agency Moody’s has downgraded its 2026 economic growth forecast for Israel to 3.7 percent due to ongoing security risks and sustained high defense spending.
- Moody’s has lowered its 2026 growth forecast for Israel to 3.7%, down from an earlier projection of 5%.
- The downgrade by Moody’s reflects the lingering economic impact of the security situation, despite recent de-escalation agreements.
- Despite the weaker forecast, Moody’s affirmed Israel’s sovereign credit rating at Baa1 with a “stable” outlook, citing the economy's resilience, strong tech sector, and good access to financial markets.
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