Israel's economy is expected to recover from the war's impact, according to Bank of Israel Governor Amir Yaron, who urged government action to address concerns raised by Moody's after downgrading Israel's sovereign credit rating. The downgrade to 'A2' from 'A1' due to political and fiscal risks from the war may lead to higher borrowing costs and potential budget cuts and tax hikes to control the budget deficit. Prime Minister Benjamin Netanyahu expressed confidence in the economy's recovery once Israel wins the war.

Israel's Economy Recovery and Challenges