The White House cut its outlook for U.S. growth in 2012 and 2013 on Friday, hours after data showed the economy grew at a tepid pace in the second quarter, raising concerns about a slowdown that could mar President Barack Obama's re-election chances.

In its semi-annual budget review, the White House said it expected gross domestic product to rise 2.3 percent this year and 2.7 percent again next year - less than the 2.7 percent and 3.0 percent growth projections it made in February.

"The economy continues to face serious headwinds that have dampened growth and limited gains in employment," the mid-session report on Obama's fiscal 2013 budget proposal stated.

It also widened its estimate for the federal deficit in fiscal 2013 - which begins Oct. 1 - to $991 billion from the original $901 billion made in February, and said the budget gap for fiscal 2012 would be $1.211 trillion, slimmer than the original $1.327 trillion.