The ratings agency has issued a strongly worded report saying that the judicial reform, “Materially weakens the judiciary’s independence and disrupts effective checks and balances.”
“There is a significant risk that political and social tensions over the issue (the judicial overhaul) will continue, with negative consequences for Israel’s economy and security situation, Moody’s warns in a special report today.
The international ratings agency added that the legislation could “Materially weaken the judiciary’s independence and disrupt effective checks and balances between the various branches of government.”
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Regarding the situation of Israel’s tech sector, Moody’s writes, “While the slowdown reflects global trends in the sector triggered by tighter financing conditions and a degree of normalization after the pandemic, there are also signs that Israel is decoupling from global trends.
Moody’s predicts annual GDP growth of 3% in Israel in 2023 and in 2024 but warns that, “Our projection does not incorporate a negative effect from a prolonged period of social and political tensions.”
Published by Globes, Israel business news – en.globes.co.il – on July 25, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
Moody’s credit: Shutterstock/Daniel J. Macy
