A world recession is a widespread decline in economic activity that lasts for at least two consecutive quarters. The causes are varied and often interrelated. One of the main causes is a financial crisis, which can be triggered by banking problems, such as high non-performing loans and excessive speculation in asset markets. As investor and consumer confidence declines, spending also declines, exacerbating the situation. Global economic crises such as the COVID-19 pandemic in 2020 show how vulnerable the world economy is. Restriction and lockdown policies have had a significant impact on the business sector, especially retail and hospitality. Not only that, it also results in disruptions to global supply chains, resulting in loss of jobs and income. High inflation is also an important factor in creating a recession. When the cost of goods and services increases, people’s purchasing power decreases. This situation is often exacerbated by tight monetary policy, which aims to stabilize the value of the currency but can result in reduced investment. The impact of the world recession on the global economy is very broad. First, economic growth in many countries is experiencing a slowdown. Developing countries that depend on international trade are particularly affected. Import demand is declining, triggering difficulties for exporters who depend on global markets. Second, recessions often cause an increase in unemployment rates. Many companies cut costs by reducing workforces, triggering a new social crisis. With more people losing their jobs, purchasing power suffers further, forming a negative cycle that can last a long time. Third, a recession can trigger political instability. People’s dissatisfaction with economic conditions often leads to protests and social conflict. Pressure on governments to find quick solutions can lead to unsustainable populist policies. The financial sector was also significantly affected. In recessionary conditions, investment instruments such as stocks and bonds can experience large fluctuations, affecting investor portfolios around the world. Trust in financial institutions is declining, which could slow the economic recovery. Lastly, innovation and business transformation become more of a priority in times of recession. Many companies invest in technology to increase efficiency and reduce costs. Changes in consumer patterns are also driving rapid adaptation, especially in digitalization. The global recession is a serious challenge, but it also provides an opportunity to rethink existing practices and business models. Adaptation and innovation are the keys for companies to survive and thrive in a complex economic landscape.