International credit rating agency Fitch has affirmed the State Israel's sovereign rating at A+ with a stable outlook.
Fitch says that Israel's rating balances strong external accounts, robust macro-economic performance and institutional strength with a ratio of government debt to GDP that is still high in comparison with peer countries, and political and security risks.
The agency says Israel's macro-economic performance has been strong and that the economy will continued to grow in 2019, with growth of 3.1% in GDP, low unemployment, a rise in pay growth, with inflation remaining low. Average real GDP growth over the past five years was stronger than that of peer countries, and fluctuations in growth were smaller. Fitch sees growth remaining strong in 2020-2021, close to 3% annually despite fiscal restraint, which will partially offset by the start of gas production from the Leviathan reservoir.
Published by Globes, Israel business news - en.globes.co.il - on August 29, 2019
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