The world recession is an economic phenomenon characterized by a significant and prolonged contraction in economic growth. The main causes of world recessions often include financial crises, natural disasters, and poor economic policies. In the last decade, recessions were triggered by several key, interconnected factors. One cause of a recession is a global financial crisis, which is usually preceded by an asset bubble. For example, the subprime mortgage crisis in the United States in 2007-2008 caused a domino effect throughout the world. When poor investments combine with unaffordable debt, many financial institutions go bankrupt, lowering overall market confidence. Additionally, geopolitical tensions played an important role in causing the recession. Conflicts between countries, such as the trade war between the United States and China, create uncertainty that disrupts global supply chains. This uncertainty encourages companies to postpone investment, which ultimately has an impact on economic growth. The impact of the world recession on the global economy is extensive and varied. First, the recession resulted in an increase in unemployment rates. Many companies are cutting their workforce to adapt to the decline in market demand. This condition creates greater social inequality and increases poverty levels in various countries. Second, the recession also affects international trade. Demand for goods and services has fallen drastically, leading to a decline in exports and imports in many countries. Countries that depend on exports, such as Brazil or Germany, are more severely affected, as they lose global market share. Third, foreign direct investment tends to decline during recessions. Investors have become more careful, shifting their funds to safer places such as government bonds. This hampers long-term economic growth, because investment is the main driver of productivity. Fourth, a recession can trigger unexpected inflation. When goods and services become scarce, prices can soar, even in the midst of an economic downturn. This inflation adds pressure to consumers who are already facing wage cuts and job losses. Finally, the government and central bank’s response to a recession often creates new problems. Lower interest rates and extensive fiscal stimulus programs could cause public debt to increase drastically, creating the risk of a future debt crisis. Overall, the global recession poses significant challenges that require international collaboration to address complex issues. Effective response to recession requires an integrated strategy, including adaptive economic policies and sustainable investment to ensure a sustainable recovery for the global economy.