WEST BANK (Dispatches) – The Zionist regime’s economy will contract 5% in the fourth quarter of this year amid rising geopolitical and security risks due to the conflict with Palestinians, credit rating agency S&P has reported.
The rating agency cited lower business activity, falling consumer demand, and a “very uncertain” investment environment.
S&P projects an Israeli fiscal deficit of 5.3% of GDP in 2023 and 2024, compared with the agency’s pre-war estimate of 2.3%.
The Zionist regime has significantly increased expenses to fund the military and to compensate businesses near Gaza, as well as the families of victims and captives held by Hamas. This has led to a record budget deficit, which last month ballooned to $6 billion, a more than sevenfold increase compared to one year ago.
The S&P report comes after the agency downgraded the Zionist regime’s credit outlook from ‘stable’ to ‘negative’ last month, just two weeks after the conflict began on October 7. Ratings agencies Moody’s and Fitch have both put the occupying regime on review for a downgrade.
S&P, however, indicated it could restore Israel’s credit outlook to ‘stable’ if the conflict is resolved, as that would mean a reduction in regional security and internal risks.