In a recent announcement, Moody's Rating Agency affirmed its A2 ratings for Israel's foreign-currency and local-currency issuances, keeping the outlook negative. This decision comes amid ongoing geopolitical risks and uncertainty, highlighting the complex security landscape that Israel navigates.
Read more: Moody's Holds Israel's A2 Rating Steady Amid Geopolitical Strife
Israel's foreign exchange reserves have witnessed a dramatic plunge, dropping by a staggering $5.632 billion in just one month, according to the latest figures released by the Bank of Israel. As of the end of April 2024, the reserves stood precariously at $208.109 billion, a significant decline from the previous month. This decline in reserves is a stark indicator of the financial turbulence faced by the nation, with the reserves relative to GDP now hanging at a mere 41%.
Read more: Israel's Foreign Reserves Dip Amid War; Economy Faces Mixed Outlook
In the first third of 2024, despite the backdrop of ongoing conflict and the disruption of Passover holidays, Israeli startups have shown remarkable resilience and capability, amassing a substantial $2.6 billion in investment capital. A significant milestone was reached in April 2024, as Israeli ventures secured over $1 billion in funding—a first in several years. This figure, impressive as it stands, potentially understates the true scale of investment, given that some enterprises prefer to operate stealthily and may not report their financial infusions.
Read more: Israeli Startups Secure $2.6B So Far In 2024 Amid Challenges
In the latest geopolitical developments, oil prices experienced a significant surge, and global stock markets tumbled following Israel's forceful retaliation against Iran. The immediate aftermath saw Brent crude, the primary international oil benchmark, ascend sharply by up to 4.2%, crossing the $90 threshold per barrel, following reports of explosions near a strategic military base early today.
Read more: Global Markets Tumble As Israel Retaliates Against Iran
Inflation in Israel observed an increase as the annual rate reached 2.7% in March, up from 2.5% in February, driven by rising costs in housing and travel, according to the latest data from the Central Bureau of Statistics. This uptick in inflation diminishes the likelihood that the central bank will cut the already high borrowing costs in May.
Read more: Israel's Inflation Rises To 2.7%, Rate Cut Seems Unlikely In May
