JERUSALEM, Nov. 10 (Xinhua) -- Credit rating agency Standard & Poor's (S&P) raised its economic growth forecast for Israel to 5.5 percent in 2026 and 7 percent in 2027, up from its previous forecast in May of 3.1 percent and 5.9 percent respectively, the Israeli Finance Ministry said on Tuesday in a statement.
The upward revisions were driven by stronger-than-expected economic activity and increased overseas output by multinational technology companies based in Israel, the ministry cited S&P's analysis as saying.
S&P said Israel's stable outlook reflects the assumption that potential military confrontations will remain limited and contained despite a fragile regional security environment.
The agency warned that a military escalation could weaken Israel's economy, while a sustained reduction in regional security risks and stronger economic growth could eventually lead to a rating upgrade.
S&P forecasts government deficits of 4.5 percent of GDP in 2026 and 4.6 percent in 2027, with public debt expected to reach 65.2 percent of GDP by 2029. ■
