Credit rating agency Fitch warned today in a document it published, which does not constitute a credit rating announcement, that the Israeli economy could face political paralysis that would also affect it. In the background is an A credit rating with a negative outlook, a situation that could lead to a future rating downgrade, a situation the company may take into account. The document states that the current rating is appropriate for now, but the inability to form a government soon will make it difficult to reduce Israel's government debt, which currently stands at about 70% of GDP (compared to 60% before the war). The company warned of political instability in the near future in Israel if a government is not formed and new elections are called.

