Monthly Review July 2026

Preface – Economic Climate

The Israeli economy sustained its positive trajectory through July 2026, characterized by further disinflation and fiscal consolidation. An indicator of this ongoing stability is the annual inflation rate, which moderated to 1.5%, providing the monetary leeway for a reduction in short-term interest rates to 3.5%. Fiscal discipline remained intact, with the 12-month deficit-to-GDP ratio holding firm at a low 3.3%, exceeding Bank of Israel’s expectations for 2026. While the Shekel experienced a mild depreciation against the USD to an average of ₪3.037, the exchange rate remains exceptionally strong by multi-year standards and continues to support domestic purchasing power.

The Israeli economy is advanced and is a member of the OECD. Its current GDP per capita is $66,442, and its growth rate in 2026 Q1 was 3.3%. Israel maintained a 3.3% deficit of GDP from August 2025 to July 2026.

The debt-to-GDP ratio decreased to 68.5% in 2025, and the unemployment rate stood at 3.1% in July 2026. As of July 2026, the annual inflation growth rate decreased to 1.5%. In July 2026, the short-term interest rate decreased to 3.5%, while the long-term interest rate stood at 3.88%.

Statistical Profile

Society

Population (June 2026): 10.263 Million

Economy

GDP per capita (July 2026): $ 66,442

Inflation (June 2026) (July Growth Rate): 1.5% 

Current Account Balance (Q1 2026): -0.04% of GDP

Trade in Goods and Services (July 2026): $14.98 billion

Finance

US Dollar Exchange rate (July 2026, Avg.): NIS 3.037

Euro Exchange rate (July 2026, Avg.): NIS 3.461

Long-term interest rates (July 2026): 3.88% Per Annum

Short-term interest rates (July 2026): 3.5% Per Annum

Government

Debt to GDP ratio (2025): 68.5%

Deficit to GDP (August 2025 - July 2026): 3.3% 

Motorization

Level of Motorization (2024): 427 Vehicles/1,000 Residence

Innovation and Technology

Gross Domestic Spending on R&D (2024): 6.76% of GDP

Environment

CO2 Emissions (2024): 5.61 Tonnes Per Capita

Jobs

Employment Rate (July 2026): 60.3% of the Working-Age Population

Official Unemployment Rate (July 2026): 3.1% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: January-July 2026

Passenger car registration: an increase of 10.3% compared with January-July 2025.

In July 2026, the Israeli passenger car market registered 26,481 new cars – an increase of 7.1% compared with July 2025. Since the beginning of the year, 203,340 new cars were registered – an increase of 10.3% compared with last year. Since January, 74,203 new cars with electric propulsion (BEV+PHEV) were registered. The market share of pure EVs currently stands at 12.0% with 24,390 deliveries.

New Passenger Cars Registration According to Brands: January-July 2026

New CV above 3.5-ton Registration: January-July 2026

Commercial Vehicles above 3.5 tons registration: 16% increase compared with January-July 2025.

In July 2026, the Israeli market for CVs above 3.5 tons and buses registered an increase of 19.1% in deliveries, with 1,473 new registrations, compared with 1,237 units in July 2025. Since the beginning of the year, 9,923 CVs above 3.5 tons and buses have been registered, an increase of 16% compared with last year.

New CV above 3.5-ton Registration According to Brands: January-July 2026

New Bus Registration According to Brands: Jan-July 2026

Israel's Auto and Auto-Tech industry

Innoviz Technologies Lands First Multi-Million Orders from Defence Customer

Innoviz Technologies Ltd. (NASDAQ: INVZ), a leading supplier of high-performance automotive-grade LiDAR sensor platforms for the automotive, security, defence and industrial markets, today announced that it has received multimillion-dollar orders of several hundred LiDAR units from a defence customer, with potential for additional units upon the successful completion of the first deployment. Innoviz has secured approximately $3.5 million in orders to power counter-drone systems and additional applications.

The orders come at a period of growing momentum for Innoviz in the defence and homeland security markets. In recent weeks, Innoviz has announced collaborations with several defense and counter-UAS providers, and in July, the former President and CEO of Rafael Advanced Defence Systems, Maj. Gen. (Ret.) Yoav Har-Even, joined the Board of Directors of Innoviz.

Emerging defence and homeland security threats are moving beyond what traditional sensor architectures were built to detect. Low-profile drones, contested perimeters, and operations in degraded visibility have exposed the limits of camera-and-radar stacks built for an earlier threat picture. Radar, cameras, and RF sensors can raise an alarm, but the location they return is often approximate rather than exact. High-resolution LiDAR is expected to close that gap. It can distinguish a drone from background clutter, help separate concealed vehicles and personnel from decoys, and maintain visibility through darkness, dust, smoke, fog, and glare that routinely degrade conventional optical systems. Built to automotive-grade reliability standards, Innoviz LiDAR performs in harsh operational conditions, day or night.

Arbe Tier-1 Sensrad Announces Collaboration with VirtuRail to Strengthen Tunnel Safety with 4D Imaging Radar

Arbe Robotics (NASDAQ: ARBE) (TASE: ARBE), a global leader in ultra-high-resolution radar solutions, announced today that its tier-1, Sensrad, has announced that it is collaborating with VirtuRail to strengthen tunnel safety with 4D Imaging Radar. VirtuRail develops Automated Service Vehicles (ASV) – rail-less, ADAS-supported transport systems designed to automate logistics in underground construction projects. Sensrad said that VirtuRail will add 4D Imaging Radar to its advanced driver assistance system, which currently relies primarily on cameras and LiDAR sensors, adding a layer of robustness in situations where optical sensors alone may be challenged.

According to Sensrad’s announcement, Sensrad’s 4D imaging radar, which is based on Arbe’s chipset, was chosen by VirtuRail for its high performance in low visibility conditions, where vision is often challenged. Tunnels can often be filled with smoke, dust, darkness, and other complex environmental conditions that can impact camera and LiDAR perception, while radar continues to provide reliable environmental awareness in these conditions.

Sensrad said that its Hugin D1 4D imaging radar and Oden Drive perception software were selected to improve system redundancy and provide reliable situational awareness in emergency situations such as tunnel fires, as well as provide a robust layer of perception to VirtuRail’s advanced driver assistance system that is designed to operate in demanding underground construction environments.

Mobileye Announces Planned Leadership Transition: Shashua Steps Down

Mobileye Global Inc. (Nasdaq: MBLY), a leading global provider of autonomous driving and advanced driver assistance technologies, announced that its founder, Prof. Amnon Shashua, has informed the Board of Directors of his intention to step down as Chief Executive Officer upon the appointment of a successor. Mobileye’s Board of Directors will hire an executive search firm and will conduct a comprehensive process to select a new CEO. Prof. Shashua will remain a director of the company, and the Board has offered Prof. Shashua the role of Chairman once a new CEO has been appointed.

Founded in 1999, Mobileye launched a revolution in automotive safety by applying computer vision technology to driving on a global scale, enabling vehicles to better protect occupants and ushering in the era of autonomous and automated driving. Its technology has been deployed in more than 250 million vehicles across more than 1,400 vehicle models around the world, shaping a safer future of mobility through advanced technologies that help drivers avoid collisions and enhance road safety every day. More recently, the company has expanded into humanoid robotics as it aims to define the future of Physical AI.

The Board emphasized that this planned transition reflects the next stage in Mobileye’s evolution as a global technology leader and is intended to ensure continuity of leadership, strategy, and execution while positioning the company for continued growth. Following the appointment of a new CEO, Prof. Shashua has been offered to serve as Chairman of the Board, focusing primarily on long-term technology trends and innovation opportunities, including advancing the company’s humanoid robotics business.

Prof. Shashua has been instrumental in guiding the company through key milestones, including overseeing its successful initial public offering, claiming the title in 2014 of the largest Israeli IPO ever, and helping facilitate the sale of the company to Intel in 2017. The company was relisted in an IPO in 2022 and is approximately 77% beneficially owned by Intel. Mobileye has taken its proven experience in building, scaling, and deploying intelligent systems to new frontiers and is well-positioned to continue doing so in the future.

Moovit Laying off 30% of Workforce

Public transport app company Moovit is laying off 30% of its workforce, about 60 of its 200 employees. According to Globes financial newspaper,  Moovit’s CEO said in a message to the employees that after a comprehensive review of the company’s activity and its strategic priorities, it had been decided to downsize the workforce and carry out a restructuring. In the restructuring, the company is expected to reduce its investment in its MaaS (mobility as a service) activity and to divert resources to growth in the consumer area and to deepening technological integration with parent company Mobileye Global Inc. (Nasdaq: MBLY) in the Robotaxi autonomous taxi project.

A few months ago, Mobileye announced that it planned to operate the Robotaxi service itself in the US. Moovit, which Mobileye acquired five years ago, has a significant part to play in this venture. In a call with investors on Thursday after the announcement that he would step down as CEO of Mobileye, Amnon Shashua said that joint teams from Mobileye and Moovit were being set up, and that Moovit would reduce its workforce on the B2B side of its business in order to focus on the new strategy. According to Globes, the message from Moovit’s CEO also said that the adoption of AI in the development cycle in the past year had improved productivity and had led to adaptation of the enterprise structure to the needs of product development in the future.

Trucknet Signs an MOU to Establish a Digital Container Terminal in Romania

Trucknet Enterprise SRL, a wholly owned subsidiary of the Trucknet, registered and operating in Romania, has entered into a Memorandum of Understanding with the Municipality of Gaesti, Romania aimed at creating a framework for cooperation between the Company and the Local Authority to promote the establishment and operation of a Smart Inland Container Terminal and a digital logistics center, which will combine advanced logistics infrastructure with the Company's technological platform for managing and coordinating shipments.

Romania is a major logistics hub connecting the Port of Constanta, Central and Eastern Europe and the Balkan region, and the logistics sector in Romania presents significant growth potential, among other things, against the backdrop of the country's strategic location in European supply chains, the increase in activity through the Port of Constanta, the expansion of transportation infrastructure and the continued demand for modern logistics space.

In light of the above, and in the assessment of the company's management, the location of the project in Gaiște, between the port of Constanta and Bucharest, near the railway and the main transportation routes, may constitute a significant logistical advantage for the planned activity in the project. The project is designed to combine the activity of a smart inland container terminal with the company's digital platform, with the aim of creating an advanced logistics center, which will enable the expansion of the company's business activity in Romania and Europe, while increasing the scope of transactions and services carried out through the Trucknet platform. The company believes that the combination of the project's strategic location, the support of the local authority and the technological capabilities of the Trucknet platform may create a significant growth engine for the company's operations in Europe and expand its sources of income from both logistics activities and the digital platform. The Memorandum of Understanding enters into force from the date of its signing for a period of 24 months, unless extended by agreement of the parties.