Standard and Poors(S&P) has lowered its growth outlook for South Korea for this year by zero-point-one percentage point to two-point-four percent. 

In its quarterly Asia-Pacific report released on Wednesday, the U.S. credit rating agency forecast overseas demand for South Korean goods will decrease due to the sluggish local electronics sector and uncertainty surrounding U.S. moves to strengthen trade protectionism. 

The agency said domestic demand will not be strong either due to corporate restructuring and the slump in the labor market, adding South Korea’s inflation will hover substantially below its target rate. 

The agency said it is possible for the Bank of Korea to lower its key rate once this year as part of an accommodative monetary policy.