The recent outbreak of unprecedented contagious disease, COVID-19 has significantly impacted world politics, economy and society as a whole. Without any cure at the moment, the pandemic has inflicted chaos and health concerns around the globe. Governments have started to impose lockdown and restrict the movement of their people, especially those in the red zones. Driven by a drop in consumer demand, the pandemic has brought huge economic damage and a dramatic fall to the global stock market. As such, this paper primarily introduces the political and economic response to COVID-19, then drills down further into discussing how pandemic has impacted consumers, businesses and economy. To curtail the downside impact brought by the pandemic, individuals and businesses such as insurance and tourism have adapted themselves to the new normal and brought up innovative solutions to the crisis via technological-driven approaches. World leaders stepped up to take initiatives for the invention of vaccines, while promoting social distancing among the public to stop the spread and flatten the curve. In the next research, we will discuss further on the global recovery in various fields after the pandemic.