EXCHANGE CORNER

Economic Twists and Turns; Yuan Faces Headwinds

Oct 28, 2021

Economic Research

Uncertainty amid Economic Twists and Turns; Yuan Faces Headwinds

By Blu Putnam, Chief Economist
Erik Norland, Senior Economist
CME Group

Economic Twists and Turns as Changes Abound

Rebuilding of economy could take time, accompanied by investor uncertainty.
Record number of job openings, high level of workers quitting jobs.
Shift in consumer demand overwhelms already stretched supply chains.
Pent-up demand lifts shipping costs, worker shortage causes backlogs at ports.

Yuan Faces Headwinds as China’s Growth Slows

China’s Q3 growth slowed to 4.9% year on year, 0.2% quarter on quarter.
Headwinds from soaring energy costs, worsening credit conditions in real estate sector.
China has been easing monetary policy when other nations are raising rates.
Slow growth, tighter monetary policy overseas could test yuan’s strength.

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