In effect, we are becoming a more capital-intensive economy, with movements in world prices leading to a significant expansion of the resources sector, which is one of the most capital-intensive sectors of the economy. BIS Review 167/2010  5  Graph 3  From a forecasting perspective, this raises a host of interesting questions. I want to touch on just three of them.
The first question is the implication for the growth rate of potential output. If everything else were constant, faster growth in the capital stock should lead to faster growth in potential output.