The British analysis agency Oxford Economics has lowered its 2020 growth forecast for South Korea from two-point-two to two percent.

Two percent is the growth figure for last year which marked the lowest in a decade.

The agency noted that South Korean exports in January fell over six percent year-on-year, down for the 14th month straight, amid lackluster global trade.

It said that international trade will further worsen amid the coronavirus outbreak.

Oxford Economics also forecast that the contraction in China's industrial activity will burden Korea's output and if demand continues to shrink in China, this will levy pressure on Korean exports.

It added that service sectors such as tourism and retail must bear the brunt of the outbreak but noted the Seoul government's fiscal expansion will help boost domestic demand.