Israel debt-to-GDP Ratio Fell in 2014

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Haifa port.Credit: Bloomberg

Israel’s debt relative to the size of its economy took an unexpected turn lower last year, figures from the treasury released yesterday showed.

Israel’s debt declined half a percentage point to 67.1% of gross domestic product, although the size of the debt actually grew to 715.8 billion shekels ($181.7 billion) at the end of 2014, from 696.3 billion a year earlier.

The debt-to-GDP ratio is a critical economic indicator used by Standard & Poor’s and other international credit rating agencies to judge how safe a borrower the country is. Israel’s ratio is low compared to the 97.3% of G-20 economies, but high compared to smaller ones such as Poland and Chile, which is under 50%.

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