A world recession is a period of significant decline in economic activity that lasts for more than a few months. Taking place in various countries, this recession was triggered by a number of interrelated factors. Among the main causes of world recessions are financial crises, such as the one that occurred in 2008, where the collapse of the subprime mortgage market in the US caused a massive global impact. Furthermore, political and social instability can also be an important cause. Trade tensions arising from protectionist policies often hamper international trade, as seen in the trade war between the US and China. Additionally, the COVID-19 pandemic shows how unexpected external factors can shake the world economy. A wave of regional closures and mobility restrictions triggered a spike in unemployment and a decline in production. The impact of the recession on the global economy is very broad. First, GDP growth in many countries will slow down, resulting in a decline in national income and people’s purchasing power. Under these conditions, companies will reduce investment and lay off workers, worsening the unemployment rate. Consumers also switch to more frugal spending, shrinking demand for goods and services. Second, a recession can cause fluctuations in currency exchange rates. Uncertainty in global markets makes investors prefer assets that are considered safe, such as gold or bonds. This results in strengthening the currencies of those countries while weakening the currencies of other countries, which can affect international trade. Third, a global recession could worsen economic inequality. Middle and lower class people are often the first to feel negative impacts, while elite groups are more adaptable. Additionally, developing countries are often more vulnerable to the impact of recessions due to their reliance on commodity exports, the prices of which are often volatile. Fourth, trust in the financial system can diminish, creating a negative cycle. Investors tend to withdraw investments from markets deemed risky, worsening liquidity and slowing economic recovery. Central banks in various countries may respond by lowering interest rates, but this is not always sufficient to stimulate growth again. Fifth, the world recession also opened discussions about more sustainable economic policies. Many argue that while a post-recession recovery is needed, it must lead to a more inclusive and environmentally friendly economic model. For example, investment in green technology and sustainable infrastructure can be an important strategy in overcoming the economic challenges faced. Overall, the world recession is a complex phenomenon that can be triggered by various factors and has a long-term impact on the global economy. By understanding its causes and impacts, countries can better prepare to face future economic challenges.