Surveys

5 Thoughts on Economic Recovery from NRF, IMF

SurveysMay 15, 2020

5 Thoughts on Economic Recovery from NRF, IMF

In two separate reports, economists from the National Retail Federation and the International Monetary Fund discussed consumer confidence and preventing future pandemics.

20200514_Money.jpg
Reports from the National Retail Federation and the International Monetary Fund take a look at the economic impact of the pandemic and projections for an economic recovery. (Image courtesy of Burst via Pexels)

New York—The COVID-19 pandemic has taken a severe toll on the global economy as the crucial policies guarding public health impact economic activity.

The global economy is expected to contract by 3 percent in 2020, higher than during the 2008 financial crisis, according to “World Economic Outlook, April 2020: The Great Lockdown,” a recent report by the International Monetary Fund.

And the retail industry has “taken the brunt” of the pandemic’s financial impact as many stores remain closed, the National Retail Federation said in its monthly economic review.

We took a look through the two reports and compiled five important takeaways.

Given the unprecedented nature of the situation, no one can say what recovery will look like with any certainty.

There is “extreme uncertainty” around the global growth forecast, said the IMF, as analysts grapple with unpredictable factors.

The effect on the economy depends on several variables, including the course of the pandemic and the effectiveness of containment efforts.

Analysts also need to consider the extent of supply disruptions and the volatility of commodity prices, as well as changes in the behaviors and spending patterns of consumers.

The IMF made the projections for its report using metrics like real GDP growth, the consumer price index, current account balance, unemployment, per capita GDP growth and fiscal balance.

Looking at the IMF’s baseline scenario, which assumes the pandemic ends in the second half of 2020 and containment efforts are gradually eased, the global economy is projected to grow by nearly 6 percent in 2021.

Though a partial recovery is projected with above-trend growth rates in 2021, GDP is predicted to remain below the pre-virus level, said the IMF.

Turning to retail specifically, NRF Chief Economist Jack Kleinhenz said in his organization’s report: “While we cannot be certain how quickly retail will recover, it is important to remember that many retailers are doing well, particularly those that have remained open.”

He added that retailers that were strong before the pandemic should make it through, and said most weaker retailers “will likely reorganize and emerge right-sized rather than disappear.”

Support from lawmakers is crucial to avoiding worst-case scenarios.

Worse outcomes than those outlined above are possible, said the IMF, especially without support from policymakers.

RELATED CONTENT: House Democrats Propose $3T Coronavirus Relief Bill

With the economy shut down, it will up to the world’s lawmakers to make sure people’s needs are met and businesses are able to reopen.

“Because the economic fallout is acute in specific

sectors, policymakers will need to implement substantial targeted fiscal, monetary, and financial market measures to support affected households and businesses domestically,” the IMF report states.

These targeted measures will be crucial to “keeping intact the economic and financial infrastructure of society.”

The NRF said in the United States, relief programs put in place by Congress and the Federal Reserve
have helped to mitigate economic decline.

Federal Reserve Chairman Jerome Powell said during remarks Wednesday, “Additional fiscal support could be costly but worth it if it helps avoid long-term economic damage and leaves us with a stronger recovery.”

We really are all in this together.

Cooperation is key to both containing the virus and generating an economic recovery.

The IMF stressed the need for countries to work together to slow the spread of the virus and to develop a vaccine and other therapies to combat COVID-19, adding that no country is safe from the pandemic until medical interventions are available.

The first priority should be securing adequate resources for health-care systems, said the IMF, including funding for additional testing and personal protective equipment.

Poorer countries with limited health-care capacity should be provided with equipment and medical expertise through grants and zero-interest emergency loans, the IMF said.

The report also suggested avoiding trade restrictions, especially on medicines and other essential supplies, so they can go where they are most needed.

“Necessary measures to reduce contagion and protect lives will take a short-term toll on economic activity but should also be seen as an important investment in long-term human and economic health,” the IMF said.

We need to start preparing now if we’re going to prevent the next pandemic.

If, as the old adage goes, the best defense is a good offense, then officials should already be thinking about how to stop something like this from happening again.

Resources should be directed to pandemic preparedness and to improving global health-care infrastructure, said the IMF.

The report suggested a system for an earlier, automatic exchange of information about “unusual” infections and the global stockpiling of personal protective equipment.

Clear protocols should be set regarding social distancing and how to transfer essential medical supplies across borders.

Consumers are cautious in the present, but hopeful for the future.

Bringing it back to retail, consumer confidence has taken a hit, said the NRF, but there may be a light at the end of the tunnel.

“Anxiety and fear are very strong emotions and consumer behavior may take time to adjust,” the federation stated in its report.

RELATED CONTENT: Squirrel Spotting: What Will Retail Look Like After COVID-19?

Consumer spending will likely suffer as a result of job losses, stock market volatility, a push toward increased saving, and the psychological effects of the pandemic.

The NRF report referenced the latest from The Conference Board, which publishes the Consumer Confidence Index, a barometer of how U.S. consumers are feeling about the economy, every month.

In April, the overall index was at 86.9, its lowest level since June 2014.

Consumers’ view of current conditions (known as the Present Situation Index) declined 90 points to reach 76.4, marking a record month-over-month drop.

But they were more optimistic about what conditions would be like six months from now, with the Expectations Index rising seven points to 93.8.

Few surveyed felt the economy was as bad off as it was during the Great Recession.

The NRF said it expects consumers to slowly ease back into shopping rather than make a speedy return—but it does expect them to return.

“In the end, shopping is more than a transaction,” the economist Kleinhenz said in an NRF press release.

“It is a social activity that is part of the fabric of American life, making it likely that consumers will want to return to normal shopping habits once the pandemic subsides and the economy fully reopens.”
Lenore Fedowis the senior editor, news at National Jeweler, covering the retail beat and the business side of jewelry.

The Latest

Image of Winona Ryder and Iman from Pandora’s Be Love marketing campaign
FinancialsAug 15, 2025
In Q2 Results, Pandora Talks Tariffs, Q4 Plans

The company had a solid second quarter, with sales of non-charm jewelry outpacing sales of pieces in its core collections.

Taylor Swift Etho Maria ruby earrings The Life of a Showgirl TS12
EditorsAug 15, 2025
Piece of the Week: Etho Maria’s Showgirl-Approved Ruby Drop Earrings

Taylor Swift dons the vibrant pair in new promotional imagery for her upcoming album, “The Life of a Showgirl,” set to release in October.

Audemars Piguet Starwheel Watch
WatchesAug 15, 2025
Audemars Piguet Acquires Majority Stake in Manufacturer

Its investment in micromechanics expert Inhotec will preserve skills essential to the watchmaking industry as a whole, said the company.

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Nicolette Bianchi
MajorsAug 15, 2025
Rio Grande Names New Marketing Director

Nicolette Bianchi joins the wholesale provider with more than 15 years of cross-industry experience in marketing and product development.

Weekly QuizAug 15, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Pippa Small Myanmar Fish Cluster
CollectionsAug 14, 2025
In Midst of ‘Sardine Girl Summer,’ Pippa Small Looks to ‘Flounder Fall’

Her new “Ocean” collection was inspired by Myanmar’s traditional articulated fish jewelry, with depictions of flounder, catfish, and more.

Casio America CEO Yusuke Suzuki
MajorsAug 14, 2025
Casio America Names New CEO

Longtime Casio executive Yusuke Suzuki is the new president and CEO of Casio’s U.S. subsidiary.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

LA Trading Day
SourcingAug 14, 2025
West Coast Orgs to Host Trading Event, Mixer in LA

The full-day sourcing and networking event, slated for Aug. 18, will be followed by the fifth annual Mega Mixer Summer Soirée.

Cristiano Ronaldo and Stephanie Gottlieb Ring
TrendsAug 13, 2025
Cristiano Ronaldo Proposes With Gigantic Oval-Cut Diamond

Model Georgina Rodríguez received a rock of an engagement ring, with her diamond estimated to be 35 carats, experts say.

International Colored Gemstone Association logo
SourcingAug 13, 2025
ICA Names 2025 Board of Directors

The board elected 9 new directors at its recent ICA Congress in Brazil.

Whiskey Barrel Ring
TrendsAug 13, 2025
Colorado Jeweler, Whiskey Maker Collab on Ring Giveaway

Three winners will receive a custom ring from Honest Hands Ring Co. inlaid with a piece of history from Denver-based distillery Stranahan’s.

Columbia Gem House Winza sapphires and rubies
SourcingAug 13, 2025
Columbia Gem House Launches Winza Sapphires, Rubies

The new inventory, all untreated, features vibrant hues and unique bicolor combinations.

Gemfields Faberge
SourcingAug 12, 2025
Gemfields Sells Fabergé for $50M

Acquired by a tech investor, the historic brand will continue to focus on jewelry, accessories, and timepieces.

Shipping containers on a ship
Policies & IssuesAug 12, 2025
Higher Tariff on Chinese Imports Paused for 90 Days, Trump Says

President Donald Trump issued an executive order extending the pause on higher tariffs to November as negotiations with China continue.

Jacquie Aiche Thunderbird Slab Collection Campaign
CollectionsAug 12, 2025
Jacquie Aiche’s New Collection Harnesses the Energy of the Thunderbird

The “Thunderbird Slab” collection features a thunderbird motif as a symbol of power, protection, and boundless possibility.

Duvall O’Steen and Jen Cullen Williams
ColumnistsAug 12, 2025
Creative Connecting: How to Take a Better Headshot

Columnists Jen Cullen Williams and Duvall O’Steen share tips on how to elevate your professional image.

Vigil for slain Wheat Ridge, Colorado jeweler Peter Damian Arguello
CrimeAug 11, 2025
Man Convicted of First-Degree Murder in Death of Colorado Jeweler

Peter Damian Arguello, a jeweler in the Denver suburb of Wheat Ridge, was found dead inside his store in November 2023.

Lisa Bridge
IndependentsAug 11, 2025
Lisa Bridge to Depart Ben Bridge Jeweler

The retailer, owned by Berkshire Hathaway, is becoming part of the Berkshire Hathaway Jewelry Group with Helzberg.

Bethenny Frankel
Events & AwardsAug 11, 2025
Bethenny Frankel to Give Keynote at CBG’s Experience Show

The Continental Buying Group’s 2025 Tampa Experience Show is slated for Sept. 8-10.

Nora Kühner fashion design consulting trend forecast colors 2027
EditorsAug 11, 2025
The Colors Expected to Be On-Trend in a Couple Years

Associate Editor Lauren McLemore recently attended a fabrics trade show where a trend forecaster shared her predictions for summer 2027.

Brilliant Earth Jolie Mosaics engagement ring
FinancialsAug 08, 2025
Brilliant Earth’s Q2 Sales Up 3% as Engagement Ring Sales Rise

The company raised its full-year sales guidance while noting it has not yet assessed the potential impact of the latest tariff news.

Jewellers for Hope charity event
Events & AwardsAug 08, 2025
GJEPC’s Jewellers for Hope Celebrates 10 Years of Fundraising

The organization has raised more than $1.3 million for charity since its inception.

Rahaminov Diamonds Emerald-Cut Diamond Bezel Bangle
TrendsAug 08, 2025
Piece of the Week: Rahaminov Diamonds’ Bezel Bangle

The brand’s latest iteration of a bezel-set diamond bangle features clean lines and a timeless design for a new modern silhouette.

Black and white photo of Tony Bennett near a microphone
WatchesAug 07, 2025
Bulova’s New Collection Honors Tony Bennett

The first watch in the series commemorates his participation in the Civil Rights movement, marching from Selma to Montgomery in 1965.

Sapphire page in Chatham’s “Ultimate Lab-Grown Catalog”
Lab-GrownAug 07, 2025
Chatham Releases Catalog for Loose Lab-Grown Gemstones

The catalog contains a complete listing of all the loose gemstones in stock, as well as information about the properties of each stone.

Rembrandt Blue Jay, Hummingbird, Cardinal Bird Charms
TechnologyAug 07, 2025
Rembrandt Charms Debuts New Website, Bird Charms

The company added a retailer dashboard to its site and three new birds to its charm collection, the cardinal, blue jay, and hummingbird.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy