A world recession is a period of widespread and prolonged decline in economic activity that affects many countries at once. The main causes of this recession include various factors, such as tight monetary policy, financial crises, and supply chain disruptions. One of the main causes of recessions is high inflation, which prompts central banks to raise interest rates to curb spending and investment. This policy, although aimed at controlling inflation, can trigger a decline in public consumption and business investment. A financial crisis caused by poorly managed debt can also be a driver of recession. For example, the subprimal crisis in the US in 2008 which rocked the global economy. Financial system instability leads to bank bankruptcies and loss of investor confidence, thereby exacerbating the impact of the recession. Other events that can trigger a recession are wars and geopolitical conflicts that cause economic uncertainty around the world, disrupting international trade. The impact of a recession is very broad, including a decrease in employment opportunities, an increase in unemployment, and a reduction in people’s income. When companies experience a decline in demand, they tend to cut their workforce. This can cause a domino effect where reduced income reduces people’s purchasing power, which in turn worsens economic conditions. Apart from that, the recession also had an impact on certain sectors that were more vulnerable, such as tourism and hospitality. The decline in tourist numbers due to economic uncertainty could force companies in this sector to reduce operational capacity or even close. Other sectors such as construction and manufacturing have also felt a similar impact, with project slowdowns and reduced purchases of raw materials. On the positive side, a recession can create opportunities for companies to innovate and restructure. Many companies use the recession as a moment to evaluate their business models and utilize new technology to increase efficiency. This can lead to the emergence of new start-ups and product innovations that can stimulate future economic growth. From a government perspective, recessions often prompt economic stimulus measures, such as tax reductions and increased public spending. These measures aim to revive economic growth and speed up recovery. However, this policy must be carried out carefully so as not to lead to higher debt and uncontrolled inflation. The effects of the recession are not only felt by individuals and companies, but also by the global economy as a whole. Countries with close trading relationships may feel the impact of a recession more severely, as a drop in demand in one country can have a direct effect on trading partner countries. This creates a negative cycle that is difficult to break and affects the slow economic recovery process. An increasingly interdependent global economic system also means that actions in one country can have lasting impacts throughout the world. Therefore, understanding the causes and impacts of the world recession is important for planning effective and responsive policies for all affected parties.