The Organization for Economic Cooperation and Development(OECD) on Thursday lowered its growth outlook for South Korea this year to two percent amid a slowdown in global trade.

In its latest economic report, the OECD downgraded its outlook for the country by one tenth of a percentage point from its previous forecast of two-point-one percent in September. 

It said the South Korean economy would grow two-point-three percent in 2020, unchanged from its previous forecast.

The OECD said that economic growth will remain subdued, as the global slowdown and trade tensions hold back exports, while high uncertainty weighs on investment. 

The organization welcomed the country's supplementary budget for this year and expansionary fiscal policy for next year, but warned of the risk of continued fiscal spending without a solid source of revenue in the face of rapid population ageing and rising demand in social services.