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The property loan crisis first hit the US. (Photo: EUobserver)

Subprime crisis will have 'far reaching' effects, IMF warns

The recent credit crisis that hit the international financial markets will have "far reaching" consequences in 2008, particularly in the US, the International Monetary Fund (IMF) has said.

"There is an effect on the real economy which will be felt more in 2008, with more intensity in the US, [and] less in other regions", Rodrigo Rato, the director general of the IMF, was quoted as saying by French daily Le Figaro.

Economic growth should remain strong worldwide, but without reachi...

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The property loan crisis first hit the US. (Photo: EUobserver)

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