benchmark, the contributions to growth have been small, on average, during the past two decades and drops in the sector’s output have shaved up to ½ percentage point from GDP growth rates in bad years.
Figure 1. State of the AutoIndustry
Sources: U.S. Bureau of Economic Analysis, DesRosiers Automotive Yearbook 2010 , OICA, and Fund staff calculations.
2. During the 2000s, the industry has undergone two of the largest shocks in the history of the sector .
Energy crisis . Between 2003 and 2008, the prices of automotive fuels surged to unprecedented levels