The Organization for Economic Cooperation and Development (OECD) has slashed South Korea’s economic growth outlook for this year a month after a similar move by the International Monetary Fund (IMF).

In its economic outlook report released on Monday, the OECD projected that South Korea’s economy will post growth of two-point-seven percent this year, down three-tenths of a percentage point from its forecast presented in June.

The OECD also lowered the country’s economic growth outlook for next year from three-point-six percent to three-point-one percent.

The OECD cited weak domestic consumption following the outbreak of Middle East Respiratory Syndrome and sluggish exports due to decreased demand from China and emerging countries in Asia as reasons for its downgrade. 

The OECD, however, projected that South Korea’s economy will expand next year as domestic demand is expected to improve due to the effects of its free trade agreements with China and Australia.