Israeli Economy Shows Resilience as Security Risks Persist, Moody's Says

Moody's semiannual review found no upward or downward pressure on Israel's Baa1 sovereign rating or stable outlook. It cited strong macroeconomic data and the economy's resilience to geopolitical shocks, while warning that the fragile security environment continues to create economic and fiscal uncertainty. The agency forecasts 3.7% growth in 2026, compared with 4% projections from the Bank of Israel and Finance Ministry and a 3.3% OECD estimate. Moody's next rating decision is expected in several months, with current market assessments anticipating no change before the October 27 Knesset election.