The International Monetary Fund (IMF) lowered its global economic growth forecast for 2023 in October, and the situation is likely to be worse for the next year.

The World Bank recently announced that the 2023 global growth forecast from the June 2022 forecast of 3%, down to 1.9%, the global economy is stepping into recession. The followings might be China's impacts from the global economic recession.

First, a global economic slowdown will have a certain impact on China's steel market, whether inflation or interest rate increases, which will inhibit consumption and investment activities, which will reduce demand growth.

Second, the global economy is slowing down, prompting the Chinese authorities to step up adjustment policies to expand domestic demand. If external demand starts to shrink, the Chinese authorities may step up growth stabilization measures to expand demand and protect the economy running in a reasonable range.

Third, the manufacturing industry in Europe and the US is in the doldrums, which is favorable to Chinese enterprises. For example, ArcelorMittal's steel plant in Germany was forced to reduce production, but this may increase the European and the US demand for China's steel.

Fourth, the global economic recession will likely cause the European and US central bank's monetary policy to ease the global economy to slow down sharply or even into recession, which will likely force the world's major governments to ease monetary.