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

Dunkelberger’s Fine Jewelry
IndependentsJun 05, 2026
Pennsylvania Jewelry Store To Close After 79 Years

Jim Springer, owner of Dunkelberger’s Fine Jewelry, is heading into retirement.

Rebel Jewelry Tunnel Charm
CollectionsJun 05, 2026
Rebel Jewelry’s Charm Symbolizes Perseverance for Pride Month

The “Tunnel” charm, our Piece of the Week, celebrates Pride Month with its design inspired by hope and the light at the end of the tunnel.

Three gold rings set with yellow- and brown-hued diamonds
SourcingJun 05, 2026
State of Diamonds: The Way Forward for Natural Diamonds

The jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.

PG-05-SHOT-2-LUCIDA.033 1.png
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in Vegas

As gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.

A Marvelous Journey: The Collection of Maurice Tempelsman
AuctionsJun 04, 2026
Treasures from Maurice Tempelsman’s ‘Marvelous’ Life Head to Auction

Up for auction at Sotheby’s, the collection of Tempelsman’s personal effects includes a Cartier Tank watch Jackie O. gifted him.

Weekly QuizJun 05, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Dakota Badia and Nancy Badia
CollectionsJun 04, 2026
Buddha Mama to Spend the Summer in Aspen

The Miami-based fine jewelry brand will host its first summer residency in the Colorado mountain town from June 5 to Aug. 23.

AGS at Peter Yantzer Building dedication
MajorsJun 04, 2026
AGS Honors Late Peter Yantzer, Holds Time Capsule Ceremony

The organization also announced its international board of directors for the 2026-2027 term.

1872x1052-NextGem-2026-National-Jeweler-Advertorial.jpg
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry Retailers

With the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.

Neiman Marcus downtown Dallas store
MajorsJun 04, 2026
Neiman Marcus’ Downtown Dallas Store to Close in September

Saks Global confirmed the closure this week, spelling the end for a store that’s been part of downtown Dallas for more than 100 years.

The Retail Smiths founder and National Jeweler columnist Peter Smith
ColumnistsJun 03, 2026
Peter Smith: When Top Talent Leaves and What It Says About You

Smith discusses how managers should handle a top performer's exit, warning that a poor response could have a lasting impact.

Screenshot of the Tracr website homepage
GradingJun 03, 2026
GIA’s Tracr Investment Is First Step Toward Industry-Owned Platform

The Gemological Institute of America is now a 30 percent stakeholder in Tracr, the De Beers-backed blockchain for diamonds.

The 1916 Company Coast to Coast Roadshow
WatchesJun 03, 2026
The 1916 Company Taking Pre-Owned Rolexes on the Road, Again

The retailer is bringing Rolex Certified Pre-Owned watches to five U.S. cities in 2026 for collectors to see, try on, and purchase.

Jessica Alba in Gabriel & Co. campaign
IndependentsJun 03, 2026
Jessica Alba Is the New Face of Gabriel & Co.

The actress and entrepreneur stars in the jeweler’s new campaign that celebrates life’s quiet moments.

Anna Maccieri Rossi Ora Wood Sunrise Cuff, Marie Lichtenberg High Jewelry Bandana, Anna Maccieri Rossi Carpe Diem Pendant
TrendsJun 03, 2026
State of Design: Only the Innovative Will Survive

The price of gold has risen, affecting the number of pieces designers make, the materials they use, and how they position themselves.

Woman with crossed hands and rings on fingers
FinancialsJun 02, 2026
Signet Jewelers’ Q1 Sales Up 2% As It Focuses on ‘Core Four’

The jewelry retailer is zeroing in on Zales, Jared, Kay Jewelers, and Blue Nile as it looks to create unique brand identities for each.

Dr. Akinwumi Adesina, chairperson of the Diamonds for Development Fund
SourcingJun 02, 2026
Leader Appointed for Botswana’s Diamonds for Development Fund

Dr. Akinwumi Adesina, a development economist, will head the fund created to help Botswana diversify its economy.

James Marks
WatchesJun 02, 2026
Watch Industry Veteran James Marks Joins Sotheby’s

Sotheby’s has appointed the former Phillips executive as its global head of private sales and retail in its watches division.

Sothebys 10-carat blue diamond, 120 carat Harry Winston diamond necklace
AuctionsJun 02, 2026
Sotheby’s to Auction 10-Carat Blue Diamond, 1960s Harry Winston Necklace

A private collection of five Paraíba tourmalines also will be up for sale at Sotheby’s High Jewelry auction in New York, scheduled for June 16.

People shopping in a jewelry store
IndependentsJun 02, 2026
State of Retail: 6 Things Retailers Should Know About Consumers Today

From Gen Z’s view of luxury to “doom spending,” these are the six consumer trends to note this year.

Zahn-Z Big Zaha Art Deco Ring
Events & AwardsJun 01, 2026
Design Atelier Brands Have a Big Night at Emotional Couture Design Awards

The show started by honoring Mildred Marcano, ended with a tearful Beth Anne Bonanno, and recognized a dozen-plus designers in between.

Rapaport's rebranding
SourcingJun 01, 2026
RapNet Rebranding as Rapaport Trade

The revamped online diamond marketplace will feature pricing intelligence and data-driven tools for more efficient buying and selling.

Gemfields emeralds
SourcingJun 01, 2026
Gemfields’ Higher-Quality Emerald Auction Achieves $26.8M

The miner said demand for higher-quality emeralds is stable, but there is notable caution in the market.

Cultus Artem River of Heaven Necklace
CollectionsMay 29, 2026
Cultus Artem’s Necklace Is the Oasis in Las Vegas’ Desert

The “River of Heaven” necklace, our Piece of the Week debuting at Couture, combines 26 salt and pepper diamonds spaced by Tahitian pearls.

Sean Dunn, Amy Greenberg, Elise Greenberg, Coleman Clark, Mitchell Clark
IndependentsMay 29, 2026
Meet the 2026 Retailer Hall of Fame Inductees

This year’s inductees include second-, third-, and fourth-generation jewelers.

Jesse Itzler
Events & AwardsMay 28, 2026
JCK Announces Jesse Itzler as 2026 Keynote Speaker

The author, speaker, and entrepreneur will give his presentation, “Spiritual Billionaire,” on Saturday morning.

JCK Rocks Nelly Graphic
Events & AwardsMay 28, 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 on Sunday night.

A screen shot of The Clear Cut's website
MajorsMay 28, 2026
Signet Jewelers to Buy The Clear Cut

Signet will integrate the online-only, natural diamond-focused jeweler into Blue Nile, which it wants to position as a higher-end retailer.

×

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