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With budget cuts, White House projects GDP to grow 2 percent this year

Alan Krueger, chairman of the Council of Economic Advisers, speaks during a media briefing at the White House in Washington November 26, 201
Alan Krueger, chairman of the Council of Economic Advisers, speaks during a media briefing at the White House in Washington November 26, 201

WASHINGTON (Reuters) - 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.

(Reporting by Roberta Rampton; Editing by Sandra Maler)

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