A local think tank is forecasting that South Korea’s economy will gradually recover from this year to log over two-percent growth in 2020. 

In its latest economic outlook released on Tuesday, the Korea Institute of Finance(KIF) projected two-point-two percent growth for Asia's fourth largest economy. As for this year, it lowered its previous forecast made in August by zero-point-two percentage points to one-point-nine percent.  

The institute said the prospect of a turnaround in global trade and an improvement in the semiconductor market will favor South Korean exporters, along with accommodative monetary policies and active fiscal measures by major countries. 

It predicted South Korea’s private consumption will show stable growth thanks in part to government policies but cautioned the recovery could be partially offset by a slump in the construction industry and feeble consumer sentiment. 

Next year’s inflation rate was projected at one-point-one percent.