During this year’s G7 summit, Japan announced its vision of creating a LNG market to meet increasing energy demand. Natural resource markets are a foundation for trade and economic development. What is less well known is the close link between the natural resource markets and the currency markets.

During this year’s G7 summit, Japan announced its vision of creating a LNG market to meet increasing energy demand. Natural resource markets are a foundation for trade and economic development. What is less well known is the close link between the natural resource markets and the currency markets.

China is unusual in that it is a developing country that has emerged as a major investor. China itself is an important destination for foreign direct investment, and opening to the outside world has been an important part of its reform program since 1978. But China’s policy is to steer FDI to particular sectors.

China is unusual in that it is a developing country that has emerged as a major investor. China itself is an important destination for foreign direct investment, and opening to the outside world has been an important part of its reform program since 1978. But China’s policy is to steer FDI to particular sectors.

In the past three and a half decades, China has grown rapidly. Between 1978 and 2015, the real gross domestic product (GDP) of the country increased from US$0.21 trillion to US$10.86 trillion, an annual growth rate of 11.3%. As a consequence, China has overtaken Japan to become the second largest economy in the world since 2010. It is widely believed that the rapid economic growth in China is heavily related to its trade with the rest of the world. On one hand, China increased the aggregate demand for domestic production through exporting labour intensive products so as to facilitate the urbanisation and industrialisation process; on the other hand, China imported a large amount of primary commodities such as petroleum, iron ores and agricultural products, and services to feed the need of domestically expanding production.

In the past three and a half decades, China has grown rapidly. Between 1978 and 2015, the real gross domestic product (GDP) of the country increased from US$0.21 trillion to US$10.86 trillion, an annual growth rate of 11.3%. As a consequence, China has overtaken Japan to become the second largest economy in the world since 2010. It is widely believed that the rapid economic growth in China is heavily related to its trade with the rest of the world. On one hand, China increased the aggregate demand for domestic production through exporting labour intensive products so as to facilitate the urbanisation and industrialisation process; on the other hand, China imported a large amount of primary commodities such as petroleum, iron ores and agricultural products, and services to feed the need of domestically expanding production.

According to current IMF projections, India is now the fastest growing major economy in the world. In 2016, it is expected to grow over a full percentage point faster than China. This is a remarkable turnaround by any standard and especially impressive against the backdrop of a stagnant global economy

According to current IMF projections, India is now the fastest growing major economy in the world. In 2016, it is expected to grow over a full percentage point faster than China. This is a remarkable turnaround by any standard and especially impressive against the backdrop of a stagnant global economy

Sri Lanka’s balance of payments is in dire straits. The country’s mounting foreign and domestic public debt, a huge fiscal deficit and a severe foreign exchange shortfall have led to potentially calamitous economic circumstances. Sri Lanka has not yet secured the means to meet its upcoming foreign loan repayments — US$4.5 billion is due over the next year, to be followed by another US$4 billion in the subsequent year.

Sri Lanka’s balance of payments is in dire straits. The country’s mounting foreign and domestic public debt, a huge fiscal deficit and a severe foreign exchange shortfall have led to potentially calamitous economic circumstances. Sri Lanka has not yet secured the means to meet its upcoming foreign loan repayments — US$4.5 billion is due over the next year, to be followed by another US$4 billion in the subsequent year.