The current world economic crisis is a phenomenon that affects countries all over the world. A variety of factors have contributed to this crisis, from the COVID-19 pandemic to geopolitical tensions and climate change. The impacts are very broad, covering social, economic and environmental aspects. One of the most significant impacts of this crisis is the increase in unemployment. Many companies, especially in the tourism and hospitality sectors, were forced to carry out mass layoffs. This causes many families to face financial difficulties, increasing poverty rates and economic uncertainty. Apart from that, high inflation is a critical issue. Prices of goods and services soar, causing people’s purchasing power to decline. Rising food and energy prices have a direct impact on daily life, especially for low-income people. Tight monetary policies, such as increasing interest rates, are implemented by some countries to control inflation, but often risk slowing economic growth further. This crisis also triggered financial market instability. Investors become inclined to withdraw investments from markets that are considered risky, resulting in high volatility. Developing countries are often the most affected, as they depend on foreign investment for infrastructure development and economic growth. In facing the negative impact of the world economic crisis, several effective solutions need to be considered. First, the government must increase social support for affected communities, such as cash assistance programs and skills training. Investments in education and skills development will increase the competitiveness of the workforce in the global market. Second, economic diversification is very important. Countries need to reduce dependence on certain sectors by developing potential new sectors, such as digital technology and renewable energy. This not only creates new jobs but also contributes to environmental sustainability. Third, international collaboration is very necessary to face common challenges. Countries around the world need to work together to strengthen the global trading system and mutually beneficial economic policies. In this context, international organizations such as the IMF and World Bank can play an important role in providing technical and financial assistance. Finally, innovation in technology is the key to building economic resilience. Small and medium enterprises (SMEs) must be encouraged to utilize digital technology to expand markets and increase efficiency. By utilizing e-commerce and digital platforms, they can more easily reach customers throughout the world. By understanding and implementing these solutions, it is hoped that the world economic crisis can be overcome and countries can return to a sustainable growth path.
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