REUTERS/Nir Elias/Illustration//File PhotoLONDON, July 30 (Reuters) - 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.
Reuters GraphicsMaplecroft's Kinnear said comparatively low inflation versus similar countries had buoyed investment, but more civil unrest could derail incoming cash.
The reform backlash "threatens to push the economy onto a permanently lower growth path," Nicholas Farr, emerging Europe economist with Capital Economics wrote in a note.
Moody's cut Israel's sovereign credit to a "dislike" stance, while S&P said on Thursday the unprecedented protests would lower economic growth this year.
S&P warned in May that it could lower its AA- Israel rating "if regional or domestic political risks escalated sharply, depressing Israel's economic, fiscal, and balance-of-payments metrics."
Persons:
Nir Elias, Benjamin, Hamish Kinnear, Reuters Graphics Maplecroft's Kinnear, Morgan Stanley, Roger Mark, Mark, Kinnear, Nicholas Farr, Moody's, Fitch, Natalia Gurushina, VanEck, Libby George, Marc Jones, Sharon Singleton
Organizations:
REUTERS, Reuters, Middle East, Reuters Graphics Reuters, Copley Fund Research, Reuters Graphics, Gross, TECH, Israeli Innovation Authority, Capital Economics, P, Fitch, AA, Thomson
Locations:
Israel, North Africa, Europe