2 TRANSPORTATION AND THE ECONOMY

PRODUCTIVITY AND PRICE PERFORMANCE OF TRANSPORT

After a period of robust annual productivity growth in the first half of the 1990s, productivity increases in selected transport industries (rail, air and trucking) slowed during the second half of the decade to 1.6 per cent per year. Productivity growth in 2001 was higher at 1.9 per cent.

Transport prices were affected by these trends. In both periods, transport prices fell in real terms. However, the reduction was far more pronounced in the first half of the 1990s when they fell by 2.3 per cent annually. The price patterns were especially altered in 2000 as a result of the spike in fuel oil prices. In 2001, transport prices returned to increases below the inflation rate.

Lower transport prices and a strong trade sector in the first half of the 1990s led to transport activity doubling the growth of the economy over this period. From 1996 to 2001, the growth of transport output slowed down but remained above that of the economy. For more information on the productivity and price performance of the transport sector, see tables A2-61 to A2-64 in the Addendum.

Canadian Economic Performance

Urbanization and Travel to Work

International Trade and Trade Flows

Tourism

Employment

Energy Consumption

Productivity and Price Performance of Transport

Importance of Transportation to the Canadian Economy