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Mexico drops annual growth projection to 2.7% from nearly 4% after sluggish first quarter

Mexico's National Statistics Institute says the economy grew 1.8 percent in the first quarter of this year, compared to the same period last year. That's below the expected performance.

The Mexican government says the sluggish growth has caused it to drop projections for 2014 to 2.7 percent from the original 3.9 percent projection.

The weaker growth report came two days after Mexico's Central Bank also lowered the annual forecast for economic growth this year to between 2.3 and 3.3 percent from the original 3-4 percent. The administration of President Enrique Pena Nieto has made economic growth its top priority but has yet to meet its own projections.

Undersecretary of Finance Fernando Aportela said slower growth in the U.S. and a new tax on sodas and junk food had impacts.