Graph 3  The increase in the terms of trade prompted a surge in investment to increase supply of the commodities that were now commanding very high prices. Two years ago we expected capital expenditure by resources firms to peak at about 8 per cent of GDP and then decline. This updated chart shows what an extraordinary period of investment this was (Graph 4).
Graph 4  BIS central bankers’ speeches  3  The peak has been reached and mining investment has since declined to about 7 per cent of GDP.