Monthly Review January 2025

Preface – Economic Climate

The Israeli economy continues to face significant challenges due to the complex security situation and global market conditions. Economic indicators reflect mixed trends: on the one hand, low unemployment and relatively moderate inflation indicate economic resilience; on the other, the high deficit and rising debt-to-GDP ratio underscore the need for cautious fiscal management. The forecast for moderate growth in 2024 emphasizes the importance of growth-supporting policy measures.

The Israeli economy is advanced and participates in the OECD organization. Its current GDP per capita is $53,294, and its growth rate in Q4 of 2024 was 2.5%.

Israel maintains a 5.8% deficit of the GDP from February 2024 to January 2025.

The debt-to-GDP ratio increased to 69% in 2024, and the unemployment rate decreased to 2.6% in January 2025. As of January 2025, the annual inflation growth rate was 3.82%. In January 2025, the short-term interest rate was 4.5%, while the long-term interest rate stood at 1.94% (December 2024).

Statistical Profile

Society

Population (January 2025): 10.027 Million

Economy

GDP per capita (January 2025): $ 53,294

Inflation (January 2025) (Annual Growth Rate): 3.8% 

Current Account Balance (2024): 4.7% of GDP

Trade in Goods and Services (January 2025): $12.16 billion

Finance

US Dollar Exchange rate (January 2025, Avg.): NIS 3.616

Euro Exchange rate (January 2025, Avg.): NIS 3.743

Long-term interest rates (January 2025): 1.94% Per Annum

Short-term interest rates (January 2025): 4.5% Per Annum

Government

Debt to GDP ratio (2024): 69%

Deficit to GDP (February 2024 - January 2025): 5.8% 

Motorization

Level of Motorization (2023): 417 Vehicles/1,000 Residence

Innovation and Technology

Gross Domestic Spending on R&D (2022):6.02% of GDP

Environment

CO2 Emissions (2022): 6.2 Tonnes Per Capita

Jobs

Employment Rate (January 2025): 63% of the Working Age Population

Official Unemployment Rate (January 2025): 2.6% of the Labour Force

New Cars and CV Registrations

 New Passenger Car Registration: January 2025

Passenger car registration: an Increase of 24.8% compared with January 2024.

In January 2025, the Israeli passenger car market registered 46,613 new cars – an increase of 24.8% compared with January 2024. 9,712 new cars with electric propulsion (BEV+PHEV) were registered, a decrease of 9.3% compared with January 2024, and the market share of pure EVs currently stands at 15.9% (23.2% at the end of January 2024).  

New Passenger Cars Registration According to Brands: January 2025

New CV above 3.5-ton Registration: January 2025

Commercial Vehicles above 3.5 tons registration: +19.7% compared with January 2024.

In January 2025, the Israeli market for CVs above 3.5 tons registered an increase of 19.7% in deliveries with 1,857 new registrations, compared with 1,551 units in January 2024.

New CV above 3.5-ton Registration According to Brands: January 2025

New Bus Registration According to Brands: January  2025

Israel's Auto and Auto-Tech industry

Innoviz, in Collaboration with NVIDIA, Showcased Cutting-Edge Perception Software with NVIDIA DRIVE AGX Orin at CES 2025

Innoviz Technologies Ltd. (Nasdaq: INVZ), a leading Tier-1 supplier of high-performance, automotive-grade LiDAR sensors and perception software, announced its latest technological advancement and showcased them at CES 2025. Highlighting the power of its perception software, Innoviz demonstrated how it runs seamlessly with the NVIDIA DRIVE AGX Orin platform, offering a range of software-driven features designed to accelerate autonomous driving applications. The collaboration with NVIDIA represents a major leap forward in the industry's shift toward high-performance, AI-enabled perception systems. Innoviz's perception software, optimized to run with the NVIDIA DRIVE Orin platform, allows for real-time processing and advanced understanding of the vehicle's environment, enabling exceptional object detection, classification, and tracking capabilities. This solution is poised to improve safety and performance across autonomous driving and advanced driver-assistance systems (ADAS).

Ituran Group Wins IDF Tender for Driver Monitoring Systems

Ituran Group won the IDF tender for driver monitoring systems, a 50 million NIS spreading over 10 years. Iturna’s systems monitor driver behavior and detect dangerous driving patterns in real-time. Ituran’s Driver monitoring systems have been installed in IDF vehicles since 2011 and decreased military vehicle turnovers by 87.5%, from 112 incidents in 2011 to only 14 in 2023.    

RAVAL Signs an Agreement with Leading European Auto Manufacturer

RAVAL, a supplier of cleaning, emission control, battery packs, and pressure regulation solutions for the auto industry, has signed a framework agreement with a leading European auto manufacturer. The 120 million euro agreement was signed 10 years ago, and the supply of the products that will be manufactured in RABAL’s facilities in Germany and Spain will commence in Q4 2027. The identity of the European manufacturer was not disclosed.

Eilat Municipality Orders a Construction Waste Management Pilot Project from Trucknet

Trucknet Enterprises, a developer of a digital cloud-based platform for optimizing transport, received an order from Eilat municipality for a pilot program for supervising and monitoring construction waste in its territory. The Trucknet location-based system will be installed in a designated truck fleet, including weight sensors. The pilot will be carried out in 2025.