Moody’s says war is weakening Israel’s economy

Moody’s Ratings has cut its forecast for Israel’s economic growth in 2026, warning that fragile ceasefires and continued geopolitical uncertainty are weighing on the country’s recovery and public finances.

In its latest assessment, the agency said Israel’s economy is now expected to grow by 3.7 per cent this year, down sharply from the 5 per cent forecast issued in January. However, this would still represent an improvement from growth of 2.9 per cent in 2025....