A new report predicts a double-digit drop in global auto sales on a year-to-year basis will continue through the first half of 2009.

Scotia Economics says, however, that it expects purchases to stabilize in the second half, limiting the slump to an average of eight per cent for 2009.

Senior economist Carlos Gomes says the fall-off will be steeper than the five per cent average drop in 2008 – the first downturn since 2001.

He says actions taken by central banks around the world and stimulus packages being introduced by many governments should lead to some stabilization in vehicle purchases.

Gomes notes vehicle sales held up better in Canada through October, but are now being pulled lower by the global financial crisis.

He says purchases fell 21 per cent year-over-year in December, leaving full-year 2008 sales at 1.64 million units - virtually unchanged from 2007.

However, Gomes expects to see a double-digit drop in 2009, falling to 1.475 million units, the lowest level since 1998.

Foreign automakers sold 51.2 per cent of vehicles in Canada last year as all three North American automakers saw their share of the market shrink.

For the full year, the Detroit Three's Canadian sales declined by 7.9 per cent to 787,378 vehicles.

Foreign automakers' sales rose 6.3 per cent to 848,608.