A local think tank predicts that the South Korean economy will grow less than three percent next year due to slowing investment growth. 

In a report released Wednesday, the Korea Economic Research Institute(KERI) forecast economic growth of two-point-eight percent for next year, zero-point-three percentage points lower than its estimate of this year’s growth. 

The institute said the growth rate of construction investment will even fall to zero next year due in part to the strong antispeculative measures and national budget cut earmarked for social overhead capital. 

KERI said facility investment growth will also slow to three percent next year amid aggravating corporate investment conditions in general such as rising interest rates and a corporate tax hike.