A state-run think tank forecasts the South Korean economy will grow two-point-four percent this year, which is lower than last year's two-point-seven percent growth.

The Korea Institute for Industrial Economics & Trade issued on Monday its economic outlook for the second half of the year and also predicted that exports will drop five-point-nine percent from last year to dip below 600 billion dollars annually.

As for the country's gross domestic product(GDP), it estimated growth of two-point-four percent for this year, citing sluggish exports due to the slowing global economy, the U.S.-China trade war as well as reduced investment and a slowdown in spending.

The institute lowered the forecast from its previous two-point-six percent from last November.

However, it said economic growth in the second half is expected to be higher at two-point-seven percent compared to two percent growth in the first six months.