A state-run think tank has assessed that the South Korean economy is facing increased uncertainties due to the resurgence of the COVID-19 pandemic.

In its August assessment report on Sunday, the Korea Development Institute (KDI) said that recently, the Korean economy was on a recovery track on the back of rising demand at home and abroad, but the resurgence of the epidemic appears to be increasing uncertainties.

The nation is grappling with the fourth wave of the epidemic as the daily tally surpassed one thousand for over a month.

The KDI positively assessed a one-point-six percent on-month gain in industrial output in June and growth of over 30 percent in daily exports in June and July.

However, it expressed concern about a drop in the country's consumer sentiment in July, assessing that increased economic uncertainties dampened consumer sentiment.

The composite consumer sentiment index marked 103-point-two for July, down seven-point-one points from a month earlier.

The KDI also announced the growth forecasts for the country after a survey of 16 experts. They expected the economy will grow four percent this year and three percent next year, up point-four percentage points and point-three percentage points, respectively from the April projections.