Standard & Poor’s, an independent credit rating agency, said that despite the severe damage from the new crown epidemic, the Israeli economy remains rated AA, and the outlook is stable.
Standard & Poor’s reported that Israel enjoys a strong economy, flexible monetary policy, relatively strong domestic savings, and smooth access to domestic and foreign capital markets.
The normalization agreement that Israel signed with the
UAE and Bahrain will lead to an increase in trade and an improvement in the economic environment.
Standard & Poor’s estimates that due to Coronavirus pandemic,
Israeli economy will contract by 5% in 2020, the largest drop in decades.
Coronavirus pandemic has caused unemployment in Israel to a record high
and many small businesses have been hit hard.
Until the end of October, there were about 969,000 Israelis unemployed, nearly a quarter of the workforce.
Before the outbreak of Covid-19, in February of this year, the unemployment rate in Israel was around 3%.