In fact, inflation forecasts of the Federal Reserve and the European Central Bank show that, while the forecasts for 2020 were revised downward immediately after the outbreak of COVID-19, those for 2021 were revised upward over time, and the actual inflation rates for 2021 clearly surpassed the 2 percent inflation target.
A significant portion of this further growth is due to China, whose current account surplus swelled an additional $ billion, rising from 3.6 percent of national output in 2004 to 9.4 percent in 2006. The increase in the Chinese surplus can be attributed primarily to an increase in the saving rate between 2004 and 2006.