Monthly Review May 2022

Preface – Economic Climate

The Israeli economy is an advanced economy that belongs to the OECD organization. The GDP per capita is $50,022 and the growth rate in 2021 is estimated by 8.1%.

Israel is recovering from the Corona crisis that has affected the Israeli economy significantly since 2020. The deficit in June 2021 – May 2022 is 0.04% from the GDP, the debt-to-GDP ratio is 65.0% The unemployment rate is 3.5% but the unofficial unemployment rate is about 4.7%. The political unease and the coming election will make it difficult to pass a new budget to 2023.

Along with the economic stabilization and quick growth, there has been an increase in the inflation rate, as of May, the annual rate is 4.1%. The Chief Economist in the Ministry of Finance predicts a similar increase next year as well.

From a monetary point of view, the Bank of Israel is dealing with the rise of the inflation. In April the interest rate rose to 0.35% due to the rise of inflation and it is expected to rise again.

Statistical Profile

Society

Population (May 2022): 9.511 Million

Economy

GDP per capita (May 2022): $ 50,022

Inflation (May 2022):4.1% Annual Growth Rate

Current Account Balance (Q1 2022): 3.72% of GDP

Trade in Goods and Services (May 2022): $15.2 billion

Finance

US Dollar Exchange rate (May 2022): NIS 3.38

Euro Exchange rate (May 2022): NIS 3.58

Long-term interest rates (May 2022): 2.59% Per Annum

Short-term interest rates (May 2022): 0.97% Per Annum

Government

Debt to GDP ratio (May 2022): 65%

Deficit to GDP (June 2021 to May 2022): 0.04%

Motorization

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

Innovation and Technology

Gross Domestic Spending on R&D (2020): 5.43% of GDP

Environment

CO2 Emissions (2018): 6.98 Tonnes Per Capita

Jobs

Employment Rate (Q1 2022): 69.05% of Working Age Population

Official Unemployment Rate (April 2022): 3.5% of Labour Force

Unofficial Unemployment Rate (including non-paid absence due to Covid-19): 4.7% of Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: Jan-May 2022

Passenger car registration: a decrease of 6.4% compared with May 2021; Since January 2022, a decrease of 11.0% compared with Jan-May 2021.

In May 2022, the Israeli passenger car market registered 25,075 new cars. This figure represents a decrease of 6.4% compared with May 2021. Since January 2022, 135,972 new cars were registered – a decrease of 11.0% compared with Jan-May 2021.

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

New CV above 3.5 ton Registration: Jan-May 2022

Commercial Vehicles above 3.5 ton registration: -13.6% compared with May 2021. Since the beginning of the year, a decrease of 6% in registrations.

In May 2022, the Israeli market for CV above 3.5 ton registered a decrease of 13.6% with 1,431 new registrations, compared with 1,657 units in May 2021. Since January, 7,356 units were registered – a decrease of 6% compared with Jan-May 2021.

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

New Bus Registration According to Brands: Jan-May 2022

Israel's Auto and Auto-Tech industry

Cognata’s Unmanned Robotics Simulation Platform to be integrated into US Defense Market

Cognata Advanced Solutions, an Israeli company that supplies large-scale off-road autonomous robotics platforms, announced the integration of its simulation authoring software into Mistral Inc.’s advanced portfolio, to further accelerate ground unmanned vehicles simulation adoption into the U.S. defense market. The Israeli company signed a deal with Mistral and will be joining its exclusive defense solutions portfolio

Cognata’s AV off-road simulation is designed to test, train, and validate perception and control challenges for terrains that do not offer a clear road definition and for paths that offer challenging conditions such as boulders, side slopes, difficult tractions, and more.The company’s simulation platform can create multiple use cases with limited visibility by other objects, bypassing a lengthy AI learning process by creating simulated environments for quick learning allowing AI to evaluate sensor-generated large-scale situations, complex multi-source data sets, and generate automatic analysis, compressing the AI/ML training time to mere months.

Stratasys Named Official 3D Printing Partner of Toyota Racing Development

Stratasys Ltd. (NASDAQ: SSYS), a leader in polymer 3D printing solutions, announced that it had been named an official partner of Toyota Racing Development (TRD). The partnership will make its debut with 3D printed production parts on the forthcoming Toyota GR86 for the GR Cup, a new single-make racing series sanctioned by SRO America.

Stratasys offers innovative 3D printing solutions for industries such as aerospace, automotive, consumer products and healthcare. Through smart and connected 3D printers, polymer materials, a software ecosystem, and parts on demand, Stratasys solutions deliver competitive advantages at every stage in the product value chain. TRD plans to continue to integrate additive manufacturing into their manufacturing processes for TRD-branded vehicles and racing cars. The GR Cup, featuring the GR86, is set to begin in 2023.

Gnrgy Wins Tender for the Installation and Operation of Charging Stations for Electric Buses

Gnrgy, supplier of EV charging solutions, won a tender published by Ayalon Highway for the installation and operation of charging stations for electric buses. The company will install and operate 28 ultra-quick 180 kW double charging stations that will enable fast charging for 56 buses at the same time in Rishon Letzion. Gnrgy has already installed 16 180 kW charging stations in a parking lot dedicated to EV charging in Ashdod. 

EV Motors Invests 5M$ and Purchases Dozens of Fuel Cell Systems from GenCell for EV Charging

EV Motors, importer of JAC electric cars and ANKAI electric buses to Israel, purchases dozens of hydrogen-based charging stations for electric vehicles in a 5M$ transaction. These off-grid charging stations will be deployed across Israel and enable zero-carbon-emission EV charging. GenCell has already supplied EV Motors with 4 hybrid charging stations. 

Apollo Power Wins 33M$ Order from Major European Auto Manufacturer

Apollo Power, developer of a diverse and flexible Energy-Film that can turn any surface into an energy source, won a 33M$ order from a major European auto manufacturer and will serve as a direct supplier of a solar product that will be included in one of the company's models. Apollo will supply tens of thousands of units over a period of 10 years, starting from mid-2024.

First Collaboration between the EU and CityZone Innovation Lab

CityZone innovation lab, the EU and CARNET Barcelona launched a new collaboration in order to deal with three urban mobility challenges in Tel-Aviv: pedestrian safety, sidewalk monitoring and identification and prevention of bicycle thefts. As part of the collaboration, the EU is calling start-ups and entrepreneurs in the field of urban mobility to offer innovative solutions to these problems. The winning proposals will receive 30,000 Euros from EIT Urban Mobility.