The Bank of Korea(BOK) says weak domestic consumption and sagging exports have slowed the pace of the country's economic recovery.

In a monthly regional economic report released Monday, the central bank said the economy has been in sluggish shape between mid-January and mid-February due to falling consumption and exports.

The BOK said although sales at department stores and large-sized discount stores were up compared to the fourth quarter thanks to seasonal promotions, the food and lodging industries have seen unimpressive sales despite the growing number of foreign tourists.

Transactions at the real estate and lease industries contracted compared to the previous quarter due to shrinking consumer sentiment after financial authorities put in place strengthened guidelines on securing bank loans.

Continuing slumps in major economies such as China also led the decline in exports from South Korea, including of its major export items such as smartphones, liquid-crystal display(LCD) panels and semiconductors.

The BOK predicted that the local economy will show a modest recovery down the road driven by the recovering domestic consumption.

The central bank, however, warned that worsening variables such as mounting volatility in the financial markets at home and abroad, slowing growth of emerging economies and heightened geopolitical risks concerning North Korea could be stumbling blocks for economic growth.