Israeli opposition leader Yair Lapid warned today, Wednesday, of an "economic catastrophe" following Fitch's downgrade of Israel's credit rating yesterday, Tuesday. Lapid said in a post on "X": "I want to warn Israelis today, there is an economic disaster looming on the horizon." He added that Finance Minister Bezalel Smotrich and Prime Minister Benjamin Netanyahu made statements yesterday claiming that the downgrade of Israel's credit rating is a result of the war. "This is a lie... both are lying to the people," he asserted.
Lapid continued, stating, "In this economic collapse, there is also a security risk... the Israeli economy is what covers security expenses." He viewed that "the occurrence of an economic crisis in Israel will mean that in tough moments for us, there will be no means to finance security needs. There will be no rebuilding the army... nor establishing the necessary system against the Iranians."
Fitch downgraded Israel's credit rating on Tuesday from "A+" to "A," citing the worsening geopolitical risks as the war in Gaza continues. The agency also maintained a negative outlook on the rating, indicating the possibility of another downgrade.
