Netanyahu announces NIS 1.2 billion plan for Beersheba, including light rail, tech investment

Turning to economic matters at the start of the weekly cabinet meeting, Prime Minister Benjamin Netanyahu announces that the government will vote on an NIS 1.2 billion ($368 million) plan for Beersheba, which will include a light rail, cyber and R&D investment, and a new building for Soroka hospital.

He also addresses global credit rating agency Standard & Poor’s upgrading Israel’s credit rating outlook to stable from negative on Friday.

“There are two reasons for this,” he posits. “We must understand that Israel’s geopolitical standing has significantly strengthened. It is much stronger than it was before October 7. Israel is seen as stronger. The greatest geopolitical and security threat to Israel — Iran — has clearly been downgraded. Iran has suffered a significant blow. Israel’s power has risen; Iran’s power has declined; and the existential threat it posed to us and the region has been greatly pushed back.”

The second reason, says Netanyahu, is that Israel’s economy defied expectations by growing during the ongoing war.

“We will see this growth even more strongly in the coming year,” he predicts. “Unemployment in Israel is at a historic low — less than 4%. Israel’s debt-to-GDP ratio is among the lowest in the Western world — 68%. I want us to understand this — it is a major achievement compared to, for example, the economies of France, Italy, the United States, and the United Kingdom. Israel’s debt-to-GDP ratio is lower than theirs, despite the fact that we have just come through a difficult war.”