"Moody's Downgrade Sparks Debate on Israel's Economic Recovery and Hostage Release Progress"

Israel's finance minister criticized Moody's decision to downgrade the country's credit rating, calling it a "political manifesto" lacking serious economic claims. Moody's cited the ongoing war in Gaza and potential conflict with Hezbollah as factors that could harm Israel's economy. Prime Minister Benjamin Netanyahu attributed the downgrade to the ongoing war and expressed confidence in the economy's strength. Israeli officials fear further downgrades could impact the country's ability to raise funds through bond sales. Despite resilience, the economy has faced challenges including military expenditures, reservist callups, governance concerns, and a slowdown in tech investments.