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Transportation and the Economy

Transportation in Canada 2009

  • In 2009, the Canadian economy recovered from a recession, which lasted three quarters starting in the last quarter of 2008. Production was lower in the first half of 2009, remained essentially unchanged during the summer months, and rose sharply in the final four months. For 2009 as a whole, the Canadian economy shrank by 2.6 per cent after growing by only 0.4 per cent in 2008.
  • Growth in domestic demand slowed to 1.7 per cent, primarily due to a 17 per cent drop in investment spending. The demand for Canadian exports dropped 14 per cent following a 4.7 per cent decline in 2008.
  • After starting 2009 at around U.S. $0.83 the Canadian dollar declined against the U.S. dollar to reach a low of U.S. $0.77 in March, rising to a high of U.S. $0.98 in October and finally falling to around U.S. $0.95 in December 2009. The average value of the Canadian dollar against the U.S. dollar in 2009 decreased 6.7 per cent to U.S. $0.876.
  • Overall, the consumer price index (CPI) increased by only 0.3 per cent in 2009, following a 2.3 per cent average increase in 2008. The low percentage increase in the CPI was the lowest since 1994 and reflects a 13.5 per cent decrease in energy prices in 2009. Transportation prices fell 5.4 per cent.
  • Real personal disposable income per capita rose by only 0.1 per cent in 2009.
  • Canada’s average number of persons employed, decreased by 1.6 per cent in 2009.
  • In 2009, all provinces/territories with the exception of Prince Edward Island experienced negative growth in real Gross Domestic Product (GDP). All provinces suffered due to falling exports. Newfoundland and Labrador, Saskatchewan and Alberta saw the steepest declines of over 5 per cent while Ontario and British Columbia witnessed moderate negative growth. Prince Edward Island saw a marginal economic increase and Nova Scotia, New Brunswick and Quebec had economic declines of less than or equal to one percent. Yukon had a small increase in real GDP while the Northwest Territories and Nunavut had sharp declines.
  • In 2009, as a consequence of the global economic slowdown that had started in 2008, Canada’s trade with the United States decreased from $603 billion to $456 billion, a drop of 24.4 per cent (due mainly to exports falling by 28 per cent), while trade with other countries also decreased by 15 per cent.
  • Trucking accounts for carrying 59 per cent of the total value of all trade with the United States, followed by both rail and pipeline at 15 per cent each, air (6 per cent) and marine at 5 per cent.
  • Close to 75 per cent of Canada-U.S. trade (by value) carried by trucks, took place at six border crossing points: Windsor/Ambassador Bridge, Fort Erie/Niagara Falls and Sarnia, in Ontario; Lacolle in Quebec; Emerson in Manitoba; and Pacific Highway in British Columbia. There were an estimated 9.8 million two-way truck movements at border points in 2009, down 15 per cent from 2008.
  • In 2009, Canada had $269 billion in trade with countries other than the United States. Of this total, $178 billion, or 66 per cent, were imports, mostly from Asian and West European countries representing 42 and 28 per cent respectively, of Canadian imports.
  • Of Canada’s top 20 trade partners, in 2009 only three countries had greater trade values (both exports and imports) with Canada when compared to 2008.
  • In 2009, China ranked second ($39.7 billion) and third ($11.2 billion), respectively, in terms of Canada’s total imports and exports.
  • Tourism expenditures, including those on transportation, fell 4.4 per cent in 2009. Transportation expenditures fell 9.4 per cent. In 2009, the number of Americans visiting Canada fell 9.2 per cent, the number of foreign visitors other than from the United States fell 12.5 per cent and the number of Canadians travelling outside the country fell 8.2 per cent. Overall, in 2009, total international travel to and from Canada fell 8.8 per cent.
  • In 2008, transportation energy use (excluding pipelines) decreased by 0.1 per cent. The aviation sector used 2.4 per cent less energy than in 2007, rail used 4.7 per cent more and road used 0.4 per cent more. Sales of marine fuels in Canada decreased by 7.9 per cent in 2008. Pipeline energy use decreased by 21.3 per cent.
  • In 2009, the annual average price of crude oil per barrel (in U.S. dollars) decreased by 37.6 per cent to $62.55. The price of Canadian oil in Edmonton, however, decreased 35.8 per cent.
  • The retail price of road gasoline and diesel decreased by 17.2 per cent and 28.4 per cent, respectively, in 2009. The price of jet fuel decreased by 44.9 per cent, marine bunker fuel by 25.5 per cent (estimated) and rail diesel by 42.0 per cent (estimated). The price decreases of road fuel were lower because a much larger proportion of those prices, compared to other fuels, is made up of fixed federal and provincial taxes that do not vary with the price of crude oil.
  • In 2008, freight rail saw a decline in total factor productivity (TFP) of 3.8 per cent, reversing the trend of strong productivity gains. Air transport TFP managed a 4.3 per cent increase despite weak market conditions, particularly in the last quarter of 2008. Discounted fares and better load factors helped VIA Rail net a 6.6 per cent increase in TFP in 2008, while public transit TFP declined by 4.6 per cent in spite of increased passenger volumes. Transportation output prices were up for the most part (VIA Rail being the exception), mainly due to large increases in fuel unit costs.
  • In 2009, commercial transportation services accounted for 4.1 per cent of Canada’s value-added GDP. In Manitoba, Saskatchewan and British Columbia, commercial transportation represents about six per cent of the provincial GDP. Ontario accounts for 37 per cent of the total national commercial transportation activity, while Quebec and Alberta each account for close to 20 per cent and British Columbia accounts for another 18 per cent.
  • Investment in transportation accounted for 2.4 per cent of Canada’s GDP in 2009.
  • Personal expenditures on transportation represented 8.0 per cent of final domestic demand in Canada in 2009.

Note: See tables and figures EC1 to EC76 in the Addendum for additional figures on trade, tourism, employment, energy, and performance in transportation.

Date modified:
2010-07-23