The current world economic crisis is a major concern for many countries. Various causes, ranging from the COVID-19 pandemic, high inflation, to wars in various parts of the world, have created global economic instability. The impact felt is very broad, affecting important sectors such as trade, investment and employment. In this context, a deep understanding of the impacts and possible solutions is crucial. One of the significant impacts of this crisis is the increase in unemployment rates. Many companies were forced to lay off employees due to decreased demand, which had a direct impact on people’s purchasing power. Additionally, high inflation causes prices of goods and services to spike, eating away at family savings. According to a World Bank report, developing countries are most affected, with projected stagnant or even negative economic growth. The trade sector also experienced major disruption. Global supply chains have been disrupted due to lockdown policies and travel restrictions. This causes a shortage of goods, which in turn increases prices and reduces people’s access to basic needs. On the other hand, foreign investment declined sharply, forcing many countries to look for new sources of financing. The solution to overcome this crisis requires a multi-stakeholder approach. First, economic stimulus can be provided by the government by increasing public spending on the infrastructure sector, which can create jobs. In addition, tax incentives for companies can encourage investment and maintain business continuity. Second, an accommodative monetary policy needs to be taken by the central bank. Reducing interest rates can make it easier for people to access loans, thereby increasing purchasing power. At the same time, countries must strengthen social protection networks to support vulnerable groups. Third, economic diversification is very important to reduce dependence on certain sectors. The state must encourage the development of the technology and innovation sector, which is expected to create new jobs and increase competitiveness. For example, investing in renewable energy could be a way out, considering that the need for new energy sources continues to increase. Fourth, international collaboration is also key. Countries must unite to face this global challenge, through trade and investment cooperation, as well as knowledge exchange. In this way, they can support each other in economic recovery. Overall, the world economic crisis is not only a challenge, but also an opportunity to improve the existing economic structure. Through appropriate and strong policies from all stakeholders, the world can move towards a more inclusive and sustainable recovery.
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