RTTNews - Moody's Investors Service said in a report on Thursday that Israel's short-term economic outlook is relatively good, reflecting only a modest fall in GDP this year. This was mainly due to the absence of toxic bank assets or a real estate bubble.

In the second quarter, the country's gross domestic product rose 1% on an annualized basis, following a 3.2% fall in the first quarter.

The modest contraction and signs of an incipient recovery are also evidence of the economy's underlying flexibility and exceptional resilience in the face of various shocks, Anthony Thomas, a Vice President-Senior Analyst in Moody's Sovereign Risk Group said.

Meanwhile, the firm also maintained Israel's A1 government bond ratings, with a stable outlook, reflecting the country's high levels of economic, institutional and financial strength. However, the ratings were constrained by a moderate susceptibility to event risk, Moody's added.

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