The Korea Development Institute(KDI) has slashed South Korea’s economic growth outlook for next year to two-point-four percent.
 
The figure, released on Wednesday, is down three-tenths of a percentage point from the institute’s earlier forecast in May.
 
The figure is also down two-tenths of a percentage point from a projection issued by the Organization for Economic Cooperation and Development last Monday.
 
KDI said it decided to downgrade next year’s outlook as domestic demand is slowing down amid a continuous slump in exports.
 
As risk factors, the institute cited uncertainties surrounding China’s economy and economic downturn in emerging economies resulting from a hike in the U.S. interest rate and heightened trade friction.
 
In particular, KDI said it did not include in its latest projection impacts that political uncertainty could have on the economy given that it is difficult to assess how the current political situation will play out.