The state-run Korea Development Institute (KDI) said that although the downturn in domestic demand has somewhat eased, the economic slowdown is continuing due to a sharp decline in exports.

The KDI presented the assessment on Sunday in its monthly economic report.

The KDI said that the downturn in domestic demand has been somewhat alleviated on the back of the service sector, with the financial markets maintaining relative stability.

However, according to the institution, the economy is still in a state of stagnation, particularly in the manufacturing sector, as exports fell as a result of the global economic downturn.

The nation's exports dropped 13-point-six percent on-year in March, compared to an on-year contraction of seven-point-five percent in the previous month.

Regarding the job market, the KDI assessed that the increase in the number of employed in the service industry is slowing down.