Global investment banks and financial services providers have predicted that the Choi Soon-sil scandal will further slow down South Korea’s economic growth in the fourth quarter and impede the country’s economic recovery.

Barclays said it is likely that South Korean policymakers will prioritize economic stability for the time being in response to the heightened political uncertainty.

Citi Group and Bloomberg expressed concerns that the massive scandal will delay the parliament’s review of next year’s budget and slow down the state's drive for corporate restructuring and economic reforms.

Bloomberg also predicted the scandal will raise uncertainties of South Korea’s monetary policy while Barclays predicted that it is highly possible the Bank of Korea will further slash the interest rate in the first quarter of next year.

Barclays also said Samsung Electronics’ decision to pull the plug on the Galaxy Note 7 will negatively affect the country’s production of electronic components and semiconductors in the fourth quarter. It also expected it is unlikely the country’s auto industry will rebound in Q4 given its falling global market shares and faltering demand.

Credit Suisse said that sluggish social overhead capital(SOC) investment and outflow of foreign investment will weigh down the country’s economic recovery.