The COVID-19 pandemic has had a significant impact on the global macro economy, triggering a recession that has hit various countries. Economic activity, which was previously stable, stopped suddenly due to strict social restrictions. The closure of key sectors, such as tourism, hospitality and manufacturing, has had a major impact on gross domestic product (GDP) around the world. One of the main issues arises from the decline in household consumption. With many restrictions implemented, consumers are forced to reduce their spending. This triggers a decline in aggregate demand, which aims to maintain people’s purchasing power. Sectors that depend heavily on domestic demand suffered heavy losses. Then, the employment sector was also badly affected. Many companies, both large and small, are laying off workers (PHK) to survive. Unemployment rates are soaring and creating uncertainty in the labor market. This mass unemployment also affects consumer confidence and triggers a deeper negative cycle. Inflation is another challenge emerging from the pandemic. Uncertainty in global markets and disruption to supply chains have increased the prices of goods and services. Even though there is a decline in demand in several sectors, main commodities are still pushed up due to shortages. On the other hand, the fiscal and monetary stimulus issued by various countries plays an important role in mitigating this economic impact. The central bank lowered interest rates and launched an asset purchase program to maintain market liquidity. However, these actions also increased public debt to unprecedented levels, fueling concerns about future fiscal sustainability. International trade was also hit hard. Travel restrictions and regional lockdowns disrupt the distribution of goods and reduce global trade flows. Many countries experience larger trade balance deficits, causing economic instability in certain regions. Meanwhile, digital innovation and business transformation have been accelerated by the pandemic. Many companies are turning to online business models to survive. The information and communications technology sector is benefiting from these changes, creating new jobs and accelerating technology adoption. The social impact caused by the pandemic has also created greater economic inequality. Vulnerable groups, such as informal workers and low-income families, are more severely affected. This disparity sparked protests and social movements that demanded the government’s attention to creating more inclusive policies. This adaptation shows that while the pandemic brings great challenges, it also offers opportunities for improvement. Transformation towards a more sustainable and digital economy can lay the foundation for growth in the post-pandemic era. However, success in global economic recovery will depend heavily on international collaboration and effective policy strategies in facing future challenges.