Global Economic Crisis: Impact and Solutions

Global Economic Crisis: Impact and Solutions The global economic crisis is a complex phenomenon that affects various aspects of life. The impact of this crisis is felt throughout the world, including developed and developing countries. One direct impact that can be observed is an increase in the unemployment rate. Many companies have been forced to cut their workforce to reduce operational costs. According to a report by the International Labor Organization (ILO), the global unemployment rate is predicted to reach its highest level in decades. Not only that, this crisis also triggered significant inflation. Prices of goods and services have increased sharply, making it difficult for people to meet basic needs. In many countries, people’s purchasing power has decreased, causing stagnant economic growth. Basic commodities such as food and energy face price spikes, which impact daily life. The financial sector is also experiencing turmoil. Many banks and financial institutions face liquidity risks, reducing their ability to provide credit. This hampers the ability of small and medium enterprises (SMEs) to develop, even though this sector should be the backbone of the economy. The social impact of the economic crisis is no less serious. Society is facing increased uncertainty, which can trigger stress and mental health problems. Economic instability also often leads to social injustice, where marginalized groups are increasingly marginalized. As a solution, international collaboration is very important. Countries must come together to formulate effective fiscal and monetary policies. Economic stimulus, such as cash assistance and subsidies, can help ease the burden on society. The government also needs to encourage investment in the infrastructure sector to create new jobs. Education and skills development are also key in dealing with this crisis. Society must be ready to adapt to dynamic changes in the job market. Training and skills improvement programs must be strengthened to prepare a competitive workforce. Digitalization is also a promising way out. Many companies are turning to digital business models, which allow them to continue operating in difficult situations. Encouraging innovation and the use of new technologies can help the economy recover more quickly. Countries must invest in digital infrastructure to facilitate the growth of this sector. Meanwhile, it is important to develop a sustainable economic system. Economic resilience must be strengthened to be more resilient to future crises. Policy direction must focus on sustainable development that embraces diversity and social inclusion. Entrepreneurship education must be introduced more widely to motivate the younger generation to create their own jobs. Strengthening the local entrepreneurial ecosystem can be an economic driving force in difficult situations. With these strategic steps, it is hoped that the impact of the global economic crisis can be minimized and economic resilience can be increased for a better future.