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

Macy’s New York City Herald Square flagship
FinancialsMar 20, 2026
Macy’s Turnaround Plans Shows Promise, Boosted by Bloomingdale’s

Plus, why Saks Global’s bankruptcy may have given Bloomingdale’s an edge.

Jwaneng Diamond
AuctionsMar 20, 2026
Sotheby's, De Beers Unveil ‘Jwaneng 28.88’ Diamond

The flawless, Type IIa stone is estimated to achieve up to $2.8 million at the auction house’s high jewelry sale in April.

Tiffany & Co.’s Three Jean Schlumberger for Tiffany & Co. Archives Brooches
TrendsMar 20, 2026
‘Frankenstein’ Costume Designer Is Bejeweled In Brooches for Oscars Win

Costume designer Kate Hawley wore three archival Tiffany & Co. brooches, our Pieces of the Week, while accepting her first Oscar.

GIA iD100®
Brought to you by
Protect Your Customers and Your Business

You deserve to know what you are selling–to protect your customers as well as your business and your reputation.

Women wearing Zales jewelry
FinancialsMar 19, 2026
Signet Jewelers to Close 100 Stores, Shutter James Allen Banner

The jewelry retailer announced changes to its store network and brand portfolio during its fourth-quarter earnings call.

Weekly QuizMar 19, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
26.36 carat round brilliant cut white diamond
AuctionsMar 19, 2026
26-Carat Diamond Tops $1M at Auction

The historic stone, which sold at Elmwood’s in London, is the largest white diamond to be offered on the U.K. market in more than a decade.

JCK Rocks Nelly Graphic
Events & AwardsMar 19, 2026
JCK Rocks To Ride With Nelly

Three-time Grammy award-winning artist Nelly is set to perform at the annual event at Tao Beach in Las Vegas on May 31.

TopImageCrop.jpg
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.

Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.

Lady Wardington and diamond-clip brooch
AuctionsMar 18, 2026
Collection of the ‘Severely Beautiful’ Lady Wardington Fetches $161K

The model and fashion editor’s gold evening bags were the top lots at the London sale, going for more than $25,000 each.

My Next Question Episode 3 guest Johnny Nelson
PodcastsMar 18, 2026
Episode 3: An Interview With Jewelry Designer Johnny Nelson

Fresh off winning the David Yurman Gem Awards Grant, Nelson discusses the ring that launched his career and his plans for the future.

Lucara blue diamond
SourcingMar 18, 2026
Lucara Recovers Nearly 37-Carat Blue Diamond

The “stunning” Type IIb stone was found via x-ray technology at its Karowe mine in Botswana.

Stuller The Basics of Jewelry
MajorsMar 18, 2026
Stuller Releases New Edition of Jewelry Education Book

“The Basics of Jewelry” has been updated to include modern topics and visuals.

Mark and Candy Udell on stage at the 2026 Gem Awards
Events & AwardsMar 17, 2026
The Best Moments From the 2026 Gem Awards

Held just before the Oscars, the jewelry industry’s big awards show had its share of standout jewelry, gowns, and acceptance speeches.

Winter Tourmaline
SourcingMar 17, 2026
Cruzeiro Mine Debuts ‘Winter Tourmaline’

The Brazilian mine’s new collection features cabochons in soft, muted shades like silver and lilac.

Natalie Portman in Tiffany & Co. Jewelry
TrendsMar 17, 2026
Natalie Portman Is Tiffany & Co.’s New Ambassador

The Academy Award-winning actress stars in Tiffany & Co.’s latest commercial, which debuted Sunday night during the Oscars.

Jean-Marc Duplaix
MajorsMar 17, 2026
Kering Establishes Jewelry Division, Appoints CEO

The organizational change follows Kering’s promise of a transformation after declining sales in 2025.

Anne Hathaway and Rose Byrne
EditorsMar 16, 2026
2026 Oscars Jewelry: One Necklace After Another

Natalie Francisco rounds up the top Oscars jewels, including Rose Byrne’s Taffin necklace with a more than 20-carat yellow-brown diamond.

Tag Heuer CEO Béatrice Goasglas
WatchesMar 16, 2026
TAG Heuer Has a New CEO

Béatrice Goasglas has been with TAG Heuer since 2018. She is the first woman to head the 166-year-old, LVMH-owned watch brand.

Ben Bridge Jeweler Honolulu boutique
IndependentsMar 16, 2026
Ben Bridge Debuts New Honolulu Boutique

The store features the first in-store build for the jeweler’s in-house “Bella Ponte” bridal brand.

Bonhams fine jewelry Paris
AuctionsMar 16, 2026
Bonhams Paris To Offer Antique, Signed Jewels

The live fine jewelry auction will take place later this week, showcasing antique pieces, rare gemstones, and signed jewels.

Silvia Furmanovich Horse Mane Earrings, Cece Jewellery Underworld Triptych Necklace, Almasika Invictus Flower Brooch
CollectionsMar 13, 2026
A Trio of Jewels from the 3 Gem Award Nominees for Jewelry Design

Our Pieces of the Week honor the 2026 nominees for the Gem Award for Jewelry Design, Silvia Furmanovich, Cece Fein-Hughes, and Catherine Sarr.

Vera Wang
WatchesMar 13, 2026
Citizen, Vera Wang to Launch Watch Collection

The 24-piece watch collection is set to debut in spring 2027.

Andrea Pooler
SourcingMar 13, 2026
Andrea Pooler Joins Third-Generation Diamond Company as COO

Pooler, who has more than 25 years’ experience in jewelry, is now chief operating officer of Modani Jewels, Soham Diamonds, and SNJ Creations.

24 Karat Club banquet
MajorsMar 13, 2026
24 Karat Club of New York’s Banquet to Return to Waldorf Astoria

The reopening of the Waldorf Astoria means a homecoming for the industry group’s annual event, which will take place Saturday.

Zoë Kravitz in Jessica McCormack’s Planetary Necklace
CollectionsMar 12, 2026
Jessica McCormack Sends Gold, Gemstones Into ‘Orbit’

McCormack looked to the 19th century’s “golden age” of astronomy when designing her new celestial-themed collection.

Johnny Nelson Wins David Yurman Gem Award Grant Graphic
Events & AwardsMar 12, 2026
Johnny Nelson Wins David Yurman Gem Awards Grant

Nelson will be honored as the inaugural grant winner at the Gem Awards gala on Friday.

David Berdugo
TechnologyMar 12, 2026
Caratwise Launches, Names Former Signet Exec CEO

The new smart design software allows jewelers to configure, price, and confirm a custom engagement ring in real time for in-store customers.

×

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