Moody's recent downgrade of Israel's credit rating has sparked concern, but there are factors that the rating agency may have overlooked. The assassination of Hezbollah leader Hassan Nasrallah has led to a different reaction from the capital markets, with the Israeli market showing resilience and growth. The strategic shift in the region's balance and the potential for long-term stability and growth are being recognized by investors. Despite the economic challenges highlighted by Moody's, such as Israel's budget deficit and the lack of Palestinian labor in real estate, these issues are being addressed and the Israeli economy remains resilient. Israel's technological and military superiority, demonstrated in recent events, translates into economic strength and makes the hi-tech and defense sectors attractive for investment. While caution is needed, there is potential for positive economic opportunities and a faster recovery than predicted by Moody's.
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Original article source: https://www.jpost.com/opinion/article-822601
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