Israel's Judicial Reform Turmoil Threatens Economic Growth, Investment

  • Posted on July 31, 2023
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  • By FC Team
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Israel's economy may face ratings downgrades, falling foreign investment and a weaker tech sector if turmoil arising from the government's contentious judicial reforms continues, investors and analysts warn.The government rammed through the first of a series of laws on Monday aimed at neutering the powers of Israel's Supreme Court in favour of Prime Minister Benjamin Netanyahu's executive branch.The move sparked widespread protests, with workers from doctors to tech firms downing tools and taking to the streets. The shekel currency has fallen more than 2% versus the dollar in the days since, taking its decline since the plans first emerged in January to more than 9%."The main issue for external investors looking at Israel at the moment is just the uncertainty," said Hamish Kinnear, senior Middle East and North Africa analyst at Verisk (NASDAQ:VRSK) Maplecroft. "There is no clear endpoint. While that remains the case, this is going to be a question mark hanging over Israel's economy." Investing.com

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