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Moody's lowers outlook for Israel's economic growth and predicts increased debt

Moody's lowers outlook for Israel's economic growth and predicts increased debt

Moody's has lowered its forecast for Israel's economic growth in 2026 to 3.7% from 5%, warning of the impact of increasing geopolitical risks, especially given the fragility of ceasefire agreements with Iran, Hezbollah, and Hamas. Meanwhile, the International Monetary Fund (IMF) expects the economy to grow by 3.5% in 2026, down from its previous estimate of 4.8%. There was a significant decline in economic performance during the first quarter, with per capita GDP decreasing by 4.5%, consumer spending dropping by 4.7%, and defense spending increasing by 9%.

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