S&P: Israel has a diversified and robust economy and an optimal debt structure

Good news for the Israeli economy, which is expected to benefit from obtaining loans with low-interest rates to cover the deficit in the state coffers. The large and well-regarded international credit rating company S&P (Standard & Four) published a semi-annual report on the Israeli economy tonight (Monday to Tuesday) in which it praises the transfer of the budget in Israel after a long period without a state budget and the strength of the economy.
In a comprehensive report, the rating company notes the main characteristics of the credit rating, including a diversified and robust economy, strong external accounts and an optimal debt structure, along with increased geopolitical risks. Stayed.
The rating company notes that Israel's economy recovered rapidly after the crisis, with the forecast for economic growth in 2021 standing at 6.5%, thanks to a strong high-tech sector and natural gas production. The company notes positively the vaccination project and that it is fast and efficient, which allows the new government to avoid imposing a closure despite the increase in morbidity.
The company further notes that the formation of the government in June 2021 has brought an end to a period of political uncertainty. This, after four elections in two years. "So far, the government has succeeded in passing a number of significant decisions, including the transfer of the state budget for 2022-2021, a move that will add confidence to budgetary policy beyond the short term. The arrangements law includes a number of structural reforms, including measures to reduce The return on pension funds. "
The report also states that the budget data is better than expected, so that the deficit for 2021 is expected to be 5.5% of GDP, and the debt-to-GDP ratio is expected to be only 68.4%. The company expects budget stability to continue. Bond issues issued for 30 to 100 years, as well as the Bank of Israel's support for the government and its being a highly reliable institution with many years of experience in monetary independence.
The report states, however, that "one of the restrictions on the credit rating is the security and geopolitical risks, but at the same time it is worth noting the 'Abraham agreements' signed with a number of countries in the Middle East."
The Minister of Finance, Avigdor Lieberman: "The announcement of the S&P rating company, which is in addition to that of FITCH, is further evidence of the strength of the Israeli economy that successfully dealt with the corona crisis and the importance of passing the state budget and a series of reforms to support the Israeli economy."
The Accountant General, Yahli Rotenberg: "Maintaining the high AA rating in S&P throughout the period of the Corona crisis, despite the very high government expenditures, stems, among other things, from the high accessibility to markets and the financing capacity of the State of Israel, in Israel and abroad." Extremists. Now, the rating company notes positively the rate of rapid recovery of the economy and the decline in the deficit resulting mainly from the revenue side, with the increase in certainty brought with it the approval of the budget. "