Full coverage· Economy· Updated 18:01

Fitch Warns of Prolonged Uncertainty Following Israeli Election Results

Credit rating agency Fitch has warned of continued uncertainty in Israel due to election results, maintaining an 'A' rating with a negative outlook.

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Fitch Warns of Prolonged Uncertainty Following Israeli Election Results — Illustration by baba

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What happened

01Fitch warns Israeli election results signal prolonged political uncertainty and a negative outlook.
02A caretaker government and "continuity budget" may hinder debt reduction efforts.
03New elections are likely in early April 2025 if coalition talks fail.
04Monthly spending could be capped at 699 billion shekels without an approved budget.
05Fitch downgraded Israel's rating to 'A' in 2024 due to the Gaza war.
06The government debt-to-GDP ratio is expected to continue a moderate rise.

The agency predicts potential Knesset dissolution and new elections in early 2025, leading to a caretaker government and a "continuity budget" that could hinder debt reduction. Fitch previously downgraded Israel's rating in 2024 due to the Gaza war and geopolitical risks.

Translated and summarized by baba from Arab48, the latest report. Read Arab48’s original