S&P lowered its outlook for Israel's sovereign debt from stable to negative and reiterated Israel's "AA -" rating. S&P stated that the conflict between Israel and Hamas "will continue to be centered around Gaza, but may spread more widely and have a more significant impact on Israel's economic and security situation". S&P predicts that Israel's GDP will contract by 5% in the fourth quarter compared to the third quarter, and then rebound in early 2024. "The economic contraction will be due to security related disruptions and reduced commercial activities," as well as the recruitment of a large number of reserve personnel, the closure of the tourism industry, and "broader confidence shocks.