The state-run Korea Development Institute(KDI) has offered a bleak diagnosis of the local economy for a second consecutive month. 

In its report for May released on Monday, the think tank said despite some improvement on the demand side, the economy remains in a slump, particularly in the investment and export sectors.

The institute also used the term “slump” in its April report. In the previous five months through March, it just said the economy was slowing. 

According to the latest assessment, retail sales in March grew two-point-four percent from a year earlier, improving from an average of one-point-three percent on-year growth posted in the January-February period. 

However, facility investment continued to fall led by the semiconductor industry while investment in the construction sectors remained sluggish. 

Exports in April also dropped by two percent from a year earlier.