In a Go application, you encounter a circular import error. How would you refactor your code to resolve this issue?

Extracting the common functionality causing the circular import into a new package is a common approach to resolve circular dependencies in Go. Reordering import statements or renaming packages may not effectively address the root cause of the circular dependency and could lead to further issues. Using blank imports to ignore circular dependencies is not a recommended practice as it can obscure the code and make it harder to understand.