The Korea Development Institute has marked down the nation’s economic growth outlook for both this year and next year. 

In a revised economic outlook report released on Tuesday, the state-run think tank projected that the nation’s economy will post growth of minus one-point-one percent this year, down one-point-three percentage points from an earlier forecast issued in May. 

The institute forecast that next year the economy will grow three-and-a-half percent, down point-four percentage points from the May forecast.  

The institute made the projections after taking into account that the economy is expected to witness a sharper decline and slower economic recovery due to the resurgence of COVID-19 cases.   

The institute’s latest outlook is higher than forecasts issued by the International Monetary Fund, the Organization for Economic Cooperation and Development and the Bank of Korea. However, it’s lower than outlooks issued by domestic private research institutes, including LG Economic Research Institute.  

Earlier, the government virtually acknowledged that the nation would witness minus growth this year, and that it would be difficult to meet the zero-point-one percent growth target presented in early June with the possible delay in economic recovery due to the rebound in COVID-19 infections.