Monthly Review December 2022

Preface – Economic Climate

The Israeli economy is an advanced economy that belongs to the OECD organization. The GDP per capita is $51,760, and the growth rate in 2022 is estimated at 6.3%.

Israel is recovering from the Covid-19 crisis that has affected the Israeli economy significantly since 2020. The deficit in January 2022 – December 2022 is negative -0.6% of the GDP.

The debt-to-GDP ratio is 60.2%. The unemployment rate is 3.9%.

At this stage, it is difficult to say how the election results will affect the Israeli economy. On the one hand, the new government entails a promise of stability that will allow an orderly transfer of the budget for the coming years; on the other hand, the entry of the religious parties into the coalition may create pressure for a significant fiscal expansion which may increase the basic deficit and delay necessary reforms in the labor market.

Along with economic stabilization and rapid growth, there has been an increase in the inflation rate; as of December, the annual rate is 5.3%. The chief economist in the ministry of finance predicts that in 2023 the inflation rate will be 2.7%

From a monetary point of view, the Bank of Israel is dealing with the rise of inflation. In January, the interest rate was raised to 3.75% due to the inflation increase.

Statistical Profile

Society

Population (November 2022): 9.64 Million

Economy

GDP per capita: $51,760

Inflation (December 2022): 5.3% Annual Growth Rate

Current Account Balance (Q3 2022): 3.55% of GDP

Trade in Goods and Services (December 2022): $ 13.899 billion

Finance

US Dollar Exchange rate (December 2022): NIS 3.45

Euro Exchange rate (December 2022): NIS 3.65

Long-term interest rates (December 2022): 3.38% Per Annum

Short-term interest rates (December 2022): 3.49% Per Annum

Government

Debt to GDP ratio: 60.2%

Deficit to GDP (January 2021 to December 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 (Q3 2022): 69.51% of Working Age Population

Official Unemployment Rate (November 2022): 3.87% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: Jan-December 2022

Passenger car registration: an increase of 86.9% compared with December 2021; Since January 2022, a decrease of 7.8% compared with Jan-Dec 2021.

In December 2022, the Israeli passenger car market registered 11,442 new cars. This figure represents an increase of 86.9% compared with December 2021. Since January 2022, 268,145 new vehicles have been registered – a decrease of 7.8% compared with Jan-Dec 2021.

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

New CV above 3.5-ton Registration: Jan-December 2022

Commercial Vehicles above 3.5-ton registration: -12.7% compared with December 2021. Since the beginning of the year, a decrease of 4.8% in registrations.

In December 2022, the Israeli market for CVs above 3.5 tons registered an increase of 12.7%, with 641 new registrations, compared with 735 units in December 2021. Since January, 15,920 units have been registered – a decrease of 4.8% compared with Jan-Dec 2021.

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

New Bus Registration According to Brands: Jan-December 2022

Israel's Auto and Auto-Tech industry

Successful Pilot for Trucknet with IDF

Trucknet, the developer of a platform for transport management and matching between cargo companies for utilizing available empty space in trucks, reports a successful pilot with the IDF. Trucknet's Trucknet Smart Catalyst system, designed for fuel consumption and emissions reduction, achieved 7% savings in diesel consumption as part of a pilot conducted with the IDF. According to the company, the device can achieve savings of up to 15% in fuel consumption and has an excellent ROI in a short period. 

GoTo Continues European Expansion

GoTo Global, the multimodal vehicle-sharing platform, continues its European expansion with two strategic transactions. The company will add to its fleet 1,500 electric mopeds and close to 200,000 customers in Berlin and Hamburg as part of a purchase of a German leasing company. In addition, GoTo has signed an agreement with Spanish transportation company ASTRA to develop a technological platform for car sharing (car-as-a-service) in exchange for 4M Euros. These transactions follow the purchase of Emmy, leading short-term rentals for electric scooters in Germany with 3,000 scooters and 350,000 customers, made last year. 

First Hydrogen-Powered Trucks Arrive in Israel

Colmobil, the importer of Hyundai to Israel, Sonol Fuel Company, and Bazan refining and petrochemicals conglomerate, presented the first Hydrogen powered trucks in Israel. The three Hyundai XCIENT Fuel cell trucks will be used by the three companies for a trial period – Sonol and Bazan will produce the necessary Hydrogen and refueling infrastructure needed for the operation of the trucks. Israel is the third country outside of Europe to participate in the trials of the Hyundai XCIENT Fuel Cell trucks, joining South Korea and New Zealand.

EV Sales in Israel Soar to a New Record

EV, PHEV, and Hybrid car sales in Israel registered new records in 2022. According to I-via data, 27,671 Electric cars, 49,963 Hybrid cars, and 13,495 PHEV cars were sold in Israel in 2022. The figure represents a new record for EVs; for the first time, the EV market share is more than 10%. In summary, in 2022, a third of all new cars sold in Israel had an alternative and environmentally friendly power train.