The International Monetary Fund: The World Economy Is Still In A Difficult Time.

Pakistan's stock market has fallen by nearly 40% in 3 months.

Stockholders' savings are rapidly decreasing, and the authorities refuse to suspend stock trading.

On the 17 day, a riot broke out in the commercial center of Karachi, and more than 1000 people took part in the protest.

Angry shareholders smashed the doors and windows of stock exchanges and nearby banks.

In recent projections, IMF expressed particular concern about the risk of global inflation. It believed that the global economy, especially the emerging and developing economies, was on the face of a sharp rise in inflation.

Pakistan stock market crash triggered riots

According to Xinhua news agency, the International Monetary Fund (IMF) released the latest forecast of world economic outlook 17.

Compared with the world economic outlook released in April, the report slightly raised the world economic growth expectations.

But the report particularly expressed concern about the risk of inflation, suggesting that the slowdown in demand in the developed economies and the rising inflation in emerging and developing economies make the world economy still in "a difficult time".

The new forecast of the world economic outlook is an updated version of the world economic outlook in April.

The report predicts that the growth rate of the global economy in 2008 and 2009 is 4.1% and 3.9% respectively.

IMF4 expects the global growth rate this year and next year to be 3.7% and 3.8% respectively.

The latest forecast is a slight increase in economic expectations for countries such as the United States, the euro zone, Japan and China.

IMF estimates that the US economic growth rates in 2008 and 2009 were 1.3% and 0.8%, respectively, which increased by 0.8% and 0.2% respectively compared with April expectations.

China's economic growth rate will slow down to 9.7% and 9.8% respectively this year and next year, up 0.4% and 0.3% respectively compared with April expectations.

The risk of recession still exists.

Despite the expected increase, it is still far behind the global economic growth rate of 5% in 2007.

The report said: "global economic growth is expected to decelerate sharply in the second half of 2008 and will gradually recover from 2009."

The report said, "the expansion of emerging and developing economies is expected to further lose momentum", from 8% in 2007 to 7% in 2008.

Simon Johnson, chief economist of the International Monetary Fund, said that although the economic development in the first half of 2008 was better than that of IMF, the "global recession risk" still exists.

Many economic experts have said that if the global economic growth rate falls below 3%, it will lead to a recession.

Facing rising inflation pressure

In recent projections, IMF expressed particular concern about the risk of global inflation. It believed that the global economy, especially the emerging and developing economies, was on the face of a sharp rise in inflation.

IMF predicts that inflation in developed economies will be 3.4% in 2008, 0.8% higher than in April.

In the dual role of slowing demand and stabilizing primary product prices, inflation will drop in 2009.

Inflation pressures in emerging and developing economies will increase sharply. Inflation is expected to be 9.1% in 2008, while IMF4 expects these economies to have an inflation rate of 7.4% this year.

The report argues that in many countries, rising food prices and rising oil prices have pushed inflation up.

The report believes that policymakers will face a difficult situation. "We need to control inflation pressure and consider the downside risks of economic growth".

IMF proposes different monetary policy recommendations for developed economies and emerging and developing economies.

The report said that for the developed economies, although the need for monetary tightening is increasing, due to better expectations for inflation and weak economic growth, prudent consideration should be given to tightening policies, while inflation remains to be closely watched.

For many emerging economies, especially those whose economies are still growing too fast, they need to tighten monetary policy and tighten fiscal constraints.