The effects of the COVID-19 pandemic on the world economy and in particular on industries are investigated in this paper by developing a conceptual framework that explores the transmission channels of the crisis through demand dynamics, supply changes, international openness and the role of government policies to contain the recession. Changes at the macroeconomic and industry level are examined. A systematic empirical documentation on changes in GDP, industrial production, exports and government expenditure in the context of the restrictions introduced to contain the pandemic is provided for all world regions and major countries. Changes in specific production systems and business strategies are considered as well to highlight the qualitative changes in the organization of specific global value chains. Finally, some implications for the world economy, structural change and international production hierarchies are discussed.