Securing Israel’s future by supporting the people behind its technology

We must not overlook investing in the future, despite the tumult of the present.

As Jews around the world remain focused on the military dimensions of Israel’s multifront war, they should also be paying closer attention to the nation’s credit rating.

AMI MOYAL JANUART22, 2025

When Moody’s downgraded Israel two notches, it served as a warning signal for the country’s future: Invest more in Israel’s economic resilience today, or assume the risk of a long-term financial crisis tomorrow. Although the recent ceasefire with Lebanon has credit rating agencies projecting more positively about the Israeli economy, both Moody’s and Fitch acknowledged that the fragility of the truce means it is too early to deem any wartime-related risk factors significantly reduced.

The good news is that we already know the Israeli economy is capable of resilience in fraught times. The Bank of Israel calculated that the 2014 Gaza war had yielded a GDP decrease of only 0.3%, while the 2006 war in Lebanon resulted in a 0.5% reduction.

We also know that Israel’s globally respected high-tech sector is already demonstrating this resilience during the current war. According to the Israel Innovation Authority, the high-tech industry remains an indispensable component of the Israeli economy, contributing nearly one-fifth (19.7%) of Israel’s GDP last year and accounting for more than half of the nation’s exports.

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