Monthly Review July 2022

Preface – Economic Climate

The Israeli economy is an advanced economy that belongs to the OECD organization. The GDP per capita is $50,466 and the growth rate in 2021 is estimated at 8.1%.

Israel is recovering from the Covid-19 crisis that has affected the Israeli economy significantly since 2020. The deficit in August 2021 – July 2022 is negative -0.6% of the GDP, this is historically the lowest deficit since 1987.

The debt-to-GDP ratio is 60.8% The unemployment rate is 3.3% but the unofficial unemployment rate is about 5%. 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 July the annual rate is 5.2%. 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 inflation. In July, the interest rate rose to 1.25% due to the rise of inflation, and it is expected to rise again.

Statistical Profile

Society

Population (July 2022): 9.55 Million

Economy

GDP per capita: $ 50,466

Inflation (July 2022): 5.2% Annual Growth Rate

Current Account Balance (Q1 2022): 3.44% of GDP

Trade in Goods and Services (July 2022): $14 billion

Finance

US Dollar Exchange rate (July 2022): NIS 3.47

Euro Exchange rate (July 2022): NIS 3.53

Long-term interest rates (July 2022): 2.67% Per Annum

Short-term interest rates (June 2022): 1.56% Per Annum

Government

Debt to GDP ratio: 60.8%

Deficit to GDP (June 2021 to July 2022): -0.6%

Motorization

Level of Motorization (2021): 406 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 (june 2022): 3.31% of Labour Force

Unofficial Unemployment Rate (including non-paid absence due to Covid-19): 5% of Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: Jan-July 2022

Passenger car registration: a decrease of 16.5% compared with July 2021; Since January 2022, a decrease of 14.4% compared with Jan-July 2021.

In July 2022, the Israeli passenger car market registered 21,863 new cars. This figure represents a decrease of 16.5% compared with July 2021. Since January 2022, 180,708 new cars were registered – a decrease of 14.4% compared with the first 7 months of 2021.  

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

New CV above 3.5 ton Registration: Jan-July 2022

Commercial Vehicles above 3.5 ton registration: +1.4% compared with July 2021. Since the beginning of the year, a decrease of 6.2% in registrations.

In July 2022, the Israeli market for CV above 3.5 ton registered an increase of 1.4% with 1,440 new registrations, compared with 1,420 units in July 2021. Since January, 10,108 units were registered – a decrease of 6.2% compared with Jan-July 2021.

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

New Bus Registration According to Brands: Jan-July 2022

Israel's Auto and Auto-Tech industry

REE Debuts an Electric Class 3 Box Truck

REE Automotive announced P7-B, a class 3 truck, built on a P7 cab chassis. The new model targets the growing delivery vehicle market and boasts an ultra-low flat floor, an all-wheel steering system, and a range of 240 kilometers. It has a payload of 2,000 Kg and a cargo volume of 23 m3. The drive train is an electric all-wheel drive-by-wire system with a peak power of 400 kW. The P7-B follows months of successful customer evaluations and is on track for 2023 production. 

NESS Technologies Wins Netivei Israel Tender

NESS Technologies won a Netivei Israel's tender for supplying technology and digital services for the national transport infrastructure company. The tender, valued at 320 Million NIS over 8 years, includes large-scale computing, technology, and digital services. NESS will help Netivei Israel realize its' vision and provide smart transportation, using IoT and Data Analytics. 

SaverOne Collaborates with Isuzu Trucks Importer UTI

SaverOne, developer of a safety system designed to tackle distracted driving due to cellphone use, announced a new collaboration with Isuzu Trucks importer UTI. As part of the collaboration, the SaverOne system will be installed in UTI trucks leased to customers, similarly to the agreements reached with Hertz, Sixt and Eldan. Initially, the system will be installed in 100 Isuzu trucks.

Osem-Nestle to use Apollo-Power Technology

Osem-Nestle, one of the largest food manufacturers and distributors in Israel, will use Apollo-Power technology in its trucks. The company will install Apollo's Energy-Film on 90 distribution trucks. The decision follows a successful pilot phase in which 8 trucks were equipped with the Energy-Film and demonstrated energy savings and a decrease in pollutant emissions. Apollo's solar sheet solution has been already adopted by global giants such as VW and Amazon.

ZOOZ and Afcon to Pilot an Ultra-Fast EV Charging Station, Bypassing Electric Infrastructure Strain

Zooz, formerly Chakratech, and Afcon Electric Transportation, are launching a pilot for an Ultra-Fast EV charging station in places where the electricity infrastructure is unable to provide the typically required high-power capacity. The charging station that will be installed in Petach-Tikva will be centered on ZOOZ's proprietary power booster product that uses magnetic flywheels and an intelligent design to dynamically manage infrastructure strain and bypass the need for greater infrastructure improvements by granting localized boosts where necessary.

Egged Wins Mega-Tender in the Netherlands

Egged public transportation, via its subsidiary EBD, won a bid for supplying public transportation and operating 220 electric buses in a region north of Amsterdam. EBS will operate the buses for 15 years at an estimated cost of 4.3 Billion NIS. The new contract will grow EBS's fleet in the Netherlands to over 700 buses, 500 of which are electric.