The standard agency
The agency’s head of global ratings, Maxim Rybnikov, told Reuters: “If the announced adjustments to the judicial formula identify a trend towards weakening Israel’s institutional arrangements and existing checks and balances, this may lead to dangers of problems for ratings in the future. “
However, he added, “we are still there. “
Rybnikov also said that “the greatest fear for us would be the. . . security scenario that may be compromised in a more difficult policy scenario. “
“Harsh rhetoric undermining the fragile scenario in the West Bank can create risks,” he said.
“If we see more protests, it’s probably not good news for the economy either. “
The far-right government led by restored Prime Minister Benjamin Netanyahu promised to enact a sweeping judicial reform that would seriously restrict judicial oversight of the government and give the coalition a wide selection of judicial appointments.
On Thursday, Chief Justice Esther Hayut denounced the plan as one that would deal a “fatal blow” to the country’s democratic identity, give the Knesset a “blank check” to pass any law it pleases, even in violation of fundamental civil rights. and depriving the courts of the necessary equipment for the executive branch.
Earlier this week, Rybnikov told the Calcalist newspaper that “if, unlike the past situation, the institutional formula in Israel enters a constant path of weakening, adding damage to the formula of checks and balances, and the political force is too concentrated in the hands of one user or group, the public debate will also be affected and this will lead to a less culpable fiscal policy, Not just for a year, but it will be a feature of policymaking. All of those things may just be an actual score risk.
Maxim Rybnikov, the lead analyst of Israel’s S score
– CTech (@Calcalistech) January 9, 2023
In the West Bank, the new government has taken a position in favor of annexing territory or parts of it (this is largely seen as a declarative policy for now), while appointing Itamar Ben Gvir and Bezalel Smotrich to key positions in the rate. of the mechanisms of application in the territory.
In November, S.
The firm estimated that Israel’s economy grew by 6% in 2022, but that global economic trends would hamper expansion in 2023, and that Israel’s GDP will grow by about 2% this year.
Israel, like much of the rest of the world, continues to struggle with inflation. The bank raised benchmark rates when inflation in Israel soared.
In his analysis, S.
The Israeli economy has been resilient in the face of uncertainty and instability in recent years. The economy, driven by exports of high value-added IT services, contracted by only 1. 9% in real terms in 2020 at the start of the COVID-19 pandemic. 19, and then grew strongly to 8. 6% in 2021, according to S
While economic expansion will stall in 2023,
At the national level, S
Home values have risen 19% through 2021 and the customer value index, a measure of inflation that tracks the average cost of household goods such as food, clothing and transportation, has risen steadily.
“We expect the government to be under pressure to adopt more spending measures to mitigate the effect on living standards in the coming months,” the firm said.
Ricky Ben-David contributed to this report.
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