prime home loans. The disruptions have reverberated around the world as banks have reduced lending and raised credit standards, leading to tighter credit markets. Johnson told reporters that difficulties in the U.S. financial sector have impacted Europe's economy. Several of its major banks have also reduced the value of securities they hold that are tied to U.S. mortgages. Growth has slowed in western Europe and confidence generally has deteriorated. The IMF expects growth in the 15-nation Euro Zone to slow to 1.6 percent this year, down from an estimated 2.6 percent in 2007, and 0.5 percentage point below the IMF's previous estimate. Asia and Latin America also will see reduced growth in 2008, the IMF said, as their exports decline because of weaker economies in the United States and Europe. China and India continue to lead the strong expansion of the emerging market and developing economies, but growth was expected to decelerate in those economies amid the overall slowdown to a 6.9 percent pace, 0.2 percentage point lower than the previous estimate. In China, growth was forecast to slow to 10 percent this year from an estimated 11.4 percent in 2007, “which should help alleviate overheating concerns,” the IMF said. In Japan, growth was expected to slow by 0.2 percentage point to 1.5 percent as expansion has been dampened by a tightening in building standards and by falling consumer confidence. Africa will grow more quickly in 2008 due to rising commodity prices and improved economic policies, Johnson said. Africa's economies will grow by 7 percent in 2008, up from 6 percent last year, the IMF said.
