The decision by Moody's to deliver Israel's first credit rating downgrade in its history late last week is a warning sign to policymakers that the strength of the public finances should not be taken for granted and that fiscal tightening is still needed in the coming years. Elsewhere, Turkey's balance of payments figures released for December this week showed a further narrowing of the current account deficit, providing further evidence that the policy tightening since the middle of last year has continued to rebalance the economy.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services