February 5, 2018
Standard & Poor’s, the provider of independent credit ratings, said over the weekend it was reaffirming Israel’s credit rating at third highest investment grade with a positive outlook, saying it expects Israel’s economy to stay strong.
“The ratings are supported by Israel’s prosperous and diverse economy, strong external balance sheet, and flexible monetary framework,” S&P said in the report.
The report said that “Israel’s economy remains prosperous and diverse,” with its manufacturing and services sectors, especially in the field of information technology, providing high added value to the economy.
“The information and communication sector contribute almost 10% of the gross value added, and scientific and technical activities about 3%. This is underpinned by high expenditure on research and development, exceeding 4% of GDP on average, the highest among member countries of the Organization for Economic Cooperation and Development,” the report said.
The authors forecast Israel’s economy will expand by about 3.1 percent on average in the years 2018-2021, with economic growth stemming from private consumption, corporate investments and strong exports of services, all supported by an easing monetary policy.