The Korea Development Institute(KDI) has assessed for the fifth straight month that the nation's economy is in a slump. 

The state-run think tank said in a monthly report released Wednesday that the South Korean economy has been slowing down amid recent contractions in both investment and exports, resulting in a prolonged slump.

It warned that Japan’s export curbs on South Korea and the deepening U.S.-China trade war could further worsen economic conditions. 

The KDI has used the term “slump” to describe economic conditions since April after having described the economy to be “slowing down” from last November to March of this year. 

The institute pointed out that industrial output for June shrank one-point-one percent on-year after posting one-point-two percent growth in May.