The Korea Development Institute(KDI) has projected that South Korea’s economy will post growth of two-point-six percent this year. That’s down four-tenths of a percentage point from its outlook issued late last year.
 
The state-run think tank’s projection presented on Tuesday is lower than the outlooks presented by other domestic and foreign institutes.
 
Last month, the Bank of Korea projected this year’s economic growth to stand at two-point-eight percent. The Organization for Economic Cooperation and Development cut its growth forecast for South Korea from three-point-one percent to two-point-seven percent on Monday last week.  
 
The International Monetary Fund lowered its outlook from two-point-nine percent to two-point-seven percent last month, while the South Korean government projected growth of three-point-one percent.
 
The KDI said it expects growth to stand at two-point-seven percent next year amid a continuous slump in exports resulting from slowing growth in domestic demand.
 
The institute cited insolvent companies’ restructuring as the biggest risk factor faced by the nation’s economy.
 
It warned that the nation’s economic growth could slow down if economic uncertainties expand and large-scale unemployment or financial jitters emerge due to a delay in restructuring efforts.