The White House projects that the economy will grow about 2 percent this year if the across-the-board automatic spending cuts remain in place, Alan Krueger, chairman of the White House Council of Economic Advisers, said on Wednesday.

The White House had originally projected 2.6 percent growth in GDP, assuming the cuts would be averted, Krueger said in a briefing on the budget, noting overall economic growth in 2013 is forecast to remain similar to 2012.