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Mexico Cuts 2014 GDP Forecast to 2.7% as 1Q Disappoints

Mexico’s government cut its 2014 growth forecast after the economy recovered less than analysts estimated in the first quarter, held back by weak export demand and a tax increase that sapped consumer confidence.

The economy will expand 2.7 percent, down from a previous forecast of 3.9 percent, the Finance Ministry said today after the statistics agency reported first-quarter growth of 1.8 percent, compared with expansion of 0.7 percent in the fourth quarter. The median estimate of 24 economists surveyed by Bloomberg was for first-quarter growth of 2.1 percent. Gross domestic product rose 0.3 percent from the previous quarter.