When COVID-19 started, there was panic worldwide as people had not seen such a pandemic in quite a while. To contain the spread of COVID-19 and manage health services from overcrowding, the governments of different countries imposed various measures like restricted movement across international borders, lockdowns, closure of schools, and production shutdowns. These changes happened so rapidly that the economy was initially unable to absorb the shock, which led to a significant economic burden. Different economies experienced varying levels of economic strain depending on their size, resilience, governance, and pre-existing vulnerabilities. As a result, there was widespread unemployment, the global supply chain was disrupted, and the stock markets crashed. The impact of COVID-19 on employment and changing patterns of the labor market, financial exchanges and stock market, entertainment industry, and the divergent responses of nations are thoroughly discussed in this chapter. Developed and developing economies’ mitigation strategies for the pandemic’s immediate and long-term effects are also covered, as well as the ways in which governments, central banks, and supervisory bodies implemented monetary and fiscal policies. Some major economies provided massive stimulus packages, implemented public, fiscal programs, and monetary policies that aided in their recovery more quickly relatively. The role played by international institutions like the World Bank and IMF in crisis management is also discussed. An emphasis is also laid on building a resilient economic framework by developing strong domestic supply chains, social security nets, and adequate fiscal space. The takeaway will be future crisis management and the importance of preparedness and international coordination in building a sustainable, inclusive economy that can withstand such global challenges in the future.