Israel’s economic growth and the efforts by the government to consolidate the national budget have led to the rating agency Standard & Poor’s upgrading Israel’s ranking. The prospects for growth in the Israeli economy have thus been improved from “stable” to “positive.” The credit analysis remains at A+.

Israel’s government was praised by the agency for its measures to cut expenses and lower taxes. “This evaluation reflects our opinion that Israel’s improved national accounts and its robust economic growth can lead to further improvements in the budget,” a spokesman for Standard & Poor’s commented.

Israel’s economy is growing at an unprecedented rate. Last year there was an increase of four percent,...