The South Korean economy has slowed due to a decline in exports, according to a state-run think tank.

The Korea Development Institute(KDI) on Monday said in a monthly report that economic activity, chiefly exports, remains subdued for the third consecutive month. 

The institute noted an expansion in production and industrial output, though it cautioned that such measurements do not indicate an upward trend.

The KDI said that private consumption is also slowing, as retail sales grew just one-point-four percent in April, down from an average of one-point-seven percent in the first quarter.  

The report showed exports dipped nine-point-four percent in May, led by a drop in semiconductor and oil product exports amid a slowing global economy.