Fitch Ratings downgraded Israel's credit score from A+ to A, citing the continued war in Gaza and heightened geopolitical risks as key drivers, with a negative outlook.
Israel's war on Gaza has killed over 40,000 Palestinians and severely impacted its economy, with signs of blowback seen in reduced consumption and trade.
The Bank of Israel estimated that war-related costs for 2023-2025 could reach $55.6bn, likely to be covered by higher borrowing and budget cuts.
During the first half of 2024, Israel's economic output grew by 2.5 percent at an annual rate, a notable decline from 4.5 percent the previous year.
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