Global credit rating agency Fitch Ratings revised down its growth forecast for South Korea this year, reflecting a new wave of the COVID-19 epidemic in the country.

In its latest report on Tuesday, Fitch lowered its 2020 economic growth outlook for South Korea from minus point-nine percent to minus one-point-one percent, though it maintained its assessment that the economic slump is less severe in South Korea compared to other countries.

Praising South Korea's successful quarantine efforts amid the recent surge, Fitch said there was no need to enforce strict restrictions on the country's economic activities.

As for the second quarter’s economic contraction of three-point-two percent from the previous quarter, the agency cited reduced external demand caused by economic slumps suffered by South Korea's trading partners.

Fitch also projected a steady recovery in the second half of the year, though private consumption will remain stagnant until the end of the third quarter because of social distancing.