The Asian Development Bank(ADB) has lowered its 2023 economic growth outlook for South Korea.

The finance ministry said the ADB lowered its forecast for South Korea in a report released on Wednesday, predicting that the nation’s economy will post growth of two-point-three percent next year, down zero-point-three percentage points from an earlier projection in July.

The outlook is lower than the South Korean government’s two-point-five percent for 2023 but higher than projections made by the Bank of Korea, the International Monetary Fund and the Organization for Economic Cooperation and Development.

The ADB maintained its initial growth projection of two-point-six percent for this year.

The bank said that although the Asian economy is seeing a recovery in consumption and employment as the pandemic situation stabilizes, negative factors persist, including monetary tightening by the U.S. and the European Union and the prolonged war between Russia and Ukraine.

The bank specifically cited China’s “deeper-than-expected” economic downturn as a major risk factor weighing on the regional economy.