Monthly Review March 2023

Preface – Economic Climate

The Israeli economy is an advanced economy that belongs to the OECD organization. The GDP per capita is $54,957. The growth rate in Q.4 of 2022 was 5.6%.

Israel is recovering from the Covid-19 crisis, which has significantly affecting the Israeli economy since 2020. However, Israel’s deficit in April 2022 - March 2023 was minimal, at 0.01% of the GDP.

In 2022, the debt-to-GDP decreased to a ratio of 60.9%. In February, the unemployment rate was 3.9%.

It is presently challenging to ascertain the impact of the election outcomes on the Israeli economy. The newly formed government holds the potential for stability, promising an organized budget transfer in the upcoming years. However, the government’s promotion of reform in the judicial system could result in market instability and cause investors to lose confidence in the legal system's ability to protect their property rights domestically and internationally.

Moreover, the inclusion of religious parties in the coalition might result in considerable fiscal expansion, leading to an increase in the basic deficit and postponing necessary labor market reforms.

As of March 2023, the annual inflation growth rate is 5.0%. In March, the short-term interest rate was raised to 3.85% due to the inflation increase, while the long-term interest rate stands at 4.2%. In 2022, Israel’s export of trade and goods reached a record of 166 billion USD.

Statistical Profile

Society

Population (February 2023): 9.656 Million

Economy

GDP per capita (February 2023): $ 54,957 (NIS 192,690)

Inflation (March 2023) (Annual Growth Rate): 5% 

Current Account Balance (December 2022): 5.4% of GDP

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

Finance

US Dollar Exchange rate (March  2023, Avg.): NIS 3.5062

Euro Exchange rate (March  2023, Avg.): NIS 3.876

Long-term interest rates (March 2023): 3.85% Per Annum

Short-term interest rates (March 2023): 4.2% Per Annum

Government

Debt to GDP ratio (2022): 60.9%

Deficit to GDP (April 2022 - March 2023): 0.01% 

Motorization

Level of Motorization (2021): 406 Vehicles/1,000 Residence

Innovation and Technology

Gross Domestic Spending on R&D (2020): 5.44% of GDP

Environment

CO2 Emissions (2022): 8.38 Tonnes Per Capita (BDO Model Estimation)

CO2 Emissions (2021): 6.74 Tonnes Per Capita

Jobs

Employment Rate (February 2023): 63.9% of Working Age Population

Official Unemployment Rate (February 2023): 3.9% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: Jan-March 2023

Passenger car registration: an increase of 6.3% compared with March 2022.

In March 2023, the Israeli passenger car market registered 29,540 new cars – an increase of 6.3% compared with March 2022. Since the beginning of the year, 105,868 new vehicles were registered, an increase of 17% compared with Jan-Mar 2023. During the first quarter of 2023, 16,500 EVs were registered, representing 15.6% of all registrations.

New Passenger Cars Registration According to Brands: Jan-March 2023

New CV above 3.5-ton Registration: Jan-March 2023

Commercial Vehicles above 3.5-ton registration: -26.5% compared with March 2022.

In March 2022, the Israeli market for CVs above 3.5 tons registered a decrease of 26.5% with 1,208 new registrations, compared with 1,643 units in March 2022. Since January, 4,475 units have been registered, a decrease of 6.4% compared with Jan-Mar 2022.

New CV above 3.5-ton Registration According to Brands: Jan-March 2023

New Bus Registration According to Brands:Jan-March 2023

Israel's Auto and Auto-Tech industry

Jungo Connectivity Signs Distribution Agreement with American Company

Jungo Connectivity, the supplier of in-cabin sensing AI software, announced that it had signed a non-exclusive distribution agreement with an American company to distribute its’ VuDrive driver monitoring system. The system will be sold in the US under the name “Mobile Mule”. The American company, whose name was not disclosed at this time, is a provider of safety solutions to large fleets that employs 1,600 workers. The agreement will be valid for three years from signing, and the system was presented for the first time to US customers during the Work Truck Show held in Indianapolis at the end of March.

SaverOne Joins the EU Regulatory Committee on Driver Distraction

SaverOne, a supplier of transportation safety solutions, announced that it had joined the EU regulatory committee on driving distraction as an observing member. This committee is responsible for setting EU regulations for OEMs for in-vehicle technologies that help detect driver distractions and improve road safety. Other members of the committee include the Automobile Manufacturers Association (ACEA), the Automobile Suppliers Association (CLEPA), the European Transport Safety Council (ETSC), and similar industry organizations. SaverOne became an observer and permanent participant in the committee, along with leading vehicle manufacturers such as Volvo and Stellantis. The EU Regulatory Committee on Driver Distraction aims to promote regulations that oblige OEMs that launch new vehicle models in the EU starting from July 2024 to integrate solutions into the vehicle systems that will tackle driver distraction. From July 2026, the integration of driver distraction systems will become required for all new vehicles sold in the EU.

Waze to Show Charging Stations on its’ Map

The Waze navigation app will show EV charging stations on its map. The new feature will show the charging station’s locations and kinds (regular or fast). Waze offers this new feature long after international navigation services such as Google Maps and Apple Maps and domestic apps such as Cello Charge and Grivo. These two Israeli domestic apps are connected to the charging companies and show whether the station is vacant or occupied and if they are working correctly. In the case of Waze, these parameters will be known according to the reports of other Waze users.

Venatata Wins Toyota Israel World Prize

Venatata, an association dedicated to cultivating healthy communities through city-wide forestation, is the winner of the Toyota Israel Earth Prize. Union Motors, the official importer of Toyota to Israel, will grant Venatata a million NIS to fulfill the vision of “Forest cities”. The money will help further the “100 Gardens project” led by Venatata, establishing therapeutic gardens in 100 rehabilitation centers throughout Israel. More than 200 organizations, associations, start-up companies, and academic institutions participated in the Israel World Prize competition, 6 of which made it to the finals.   

Ravin AI to Collaborate with Haifa Port

Ravin AI, the developer of AI-based visual inspection tools for new vehicles, announced a partnership with Haifa Port, Israel’s largest port. With this partnership, Ravin’s Autoscan and Eye tool will be implemented to inspect new vehicles entering Israel and pinpoint damage done during transport, offloading, and storage processes.

RYDE Mobility Presents New Products at RYDE 2023 Conference

RYDE Mobility is the developer of a technological platform for organizational ride-sharing and intelligent and effective management of organizational transportation needs. As part of the RYDE 2023 conference, the company presented three new developments in employee transportation. The first is a new AI-based system that studies the organization and its’ needs, applies optimization and personalization, and suggests ways to save transportation costs. The second is a new passenger app with an upgraded UX; the third is a new out-sourcing service called “all RYDE”. RYDE is being used every day by 80,000 passengers daily from 200 Israeli companies and organizations.