Monthly Review February 2022

Preface – Economic Climate

The Israeli economy is an advanced economy that belongs to the OECD organization. The GDP per capita is $51,203 and the growth rate in 2021 is estimated by 7.1%.

Israel is recovering from the Covid-19 crisis that has affected the Israeli economy significantly since 2020. The deficit in March 2021- February 2022 is 2.2% from the GDP, the debt-to-GDP ratio is 67%. The unemployment rate is 3.9% but the unofficial unemployment rate climbed to about 5.5%. The new government gave a good signal to the markets by passing a new budget for the first time in 3 years. From a monetary point of view, the crisis is being managed professionally by the Bank of Israel, which is monitoring the local credit market and solving liquidity problems through plans to purchase bonds and keep interest rates low.

Along with economic stabilization and quick growth, there has been an increase in the inflation rate, as of February, the annual rate is 3.5%. The chief economist in the Ministry of Finance predicts a similar increase next year as well.

Statistical Profile

Society

Population (January 2022): 9.464 Million

Economy

GDP per capita (February 2022): $ 51,203

Inflation (February 2022): 3.5% Annual Growth Rate

Current Account Balance (Q4 2021): 4.9% of GDP

Trade in Goods and Services (February 2022): $12.8 billion

Finance

US Dollar Exchange rate (February 2022): NIS 3.21

Euro Exchange rate (February 2022): NIS 3.64

Long-term interest rates (February 2022) : 1.63% Per Annum

Short-term interest rates (February 2022): 0.09% Per Annum

Government

Debt to GDP ratio (February 2022): 67%

Deficit to GDP (March 2021 to February 2022): 2.2%

Motorization

Level of Motorization (2020): 397 Vehicles/1,000 Residence

Innovation and Technology

Gross Domestic Spending on R&D (2019): 4.9% of GDP

Environment

CO2 Emissions (2018): 6.98 Tonnes Per Capita

Jobs

Employment Rate (Q4 2021): 68.16% of Working Age Population

Official Unemployment Rate (February 2022): 3.9% of Labour Force

Unofficial Unemployment Rate (including non-paid absence due to Covid-19): 5.5% of Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: Jan-Feb 2022

Passenger car registration: at par with February 2021; Since January 2022, a decrease of 15.1% compared with Jan-Feb 2021.

In February 2022, the Israeli passenger car market registered 25,291 new cars. This figure is similar to that of February 2021. Since January, 62,695 new cars were registered – a decrease of 15.1% compared with Jan-Feb 2021.

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New Passenger Cars Registration According to Brands: Jan-Feb 2022

New CV above 3.5 ton Registration: Jan-Feb 2022

Commercial Vehicles above 3.5 ton registration: -16% compared with February 2021; Since January, a decrease of 9.7% compared with Jan-Feb 2021.

In February 2022, the Israeli market for CV above 3.5 ton registered a decrease of -16% in registrations with 1,198 new registrations, compared with 1,426 units in February 2021. Since January, 3,144 units were registered - a decrease of 9.7% compared with Jan-Feb 2021.

New CV above 3.5 ton Registration According to Brands: Jan-Feb 2022

New Bus Registration According to Brands: Jan-Feb 2022

Israel's Auto and Auto-Tech industry

SaverOne to Carry Out POC with Iveco

Following a successful demonstration of SaverOne safety system to Iveco management, the company will carry out a joint POC (Proof of Concept) for a safety product designed to tackle driver distraction caused by cellular phones that will be integrally implemented in Iveco trucks. The two companies already signed a collaboration agreement and in addition to promoting the collaboration on the new jointly developed product, Iveco will also explore the possibility of adding SaverOne products to its' after-market offers for existing Iveco trucks.

Supergas Enters EV Charging

Supergas, gas distribution company, signed an agreement with Nisko electronics for purchasing and marketing EV charging stations and charging management systems. The agreement will enable Supergas to expand its' activity in the energy market and create new growth engines. Nisko electronics is the Israeli representative of Green Motion – a Swiss company specializing in producing, installing and operating EV charging stations and charging management systems. 

Electreon Wireless Signs Strategic Agreement with Jacobs

Electreon, wireless charging pioneer and developer of "Electric-Smart-Road", signed a strategic collaboration agreement with American infrastructure and engineering giant Jacobs. The two companies will collaborate in wireless charging projects across the US, following a successful collaboration that already led to winning, along with other companies such as Ford, the first tender for inductive charging on a US public road in Michigan earlier this year. 

Afcon Holdings Invests 10M NIS in Chakratec

Afcon Holdings invests 10M NIS in Chakratec, developer of EV charging technology and energy storage systems. Chakretec is a provider of flywheel energy storage systems for EV charging that allows quick charging even in areas with weak electric grid. Following the investment, Afcon Holdings will become one of the largest shareholders in Chakratec.

First Hydrogen Powered Trucks to Enter Israeli Roads

Hydrogen Powered Trucks will drive on Israeli roads for the first time within a few months, following an agreement signed by Bazan, Sonol and Colmobil. Bazan Group will supply the Hydrogen, Sonol will build and operate the first Hydrogen filling station and Colmobil will import Hyundai Xcient fuel-cell hydrogen powered electric trucks. 

GoTo Global is Going Public on the Tel-Aviv Stock Exchange

GoTo shared mobility solutions is going public on the TASE through a merger with shell company Nera Tech Media. The merger is expected in early April. GoTo offers shared micromobility and car sharing services in Spain, Israel, Malta and Germany, and has a fleet of 5,800 vehicles.