The state-run Korea Development Institute(KDI) has slashed its estimate for the nation’s current account surplus this year by some ten billion dollars.

In its latest report released on Wednesday, the KDI said the nation will post a current account surplus of 16 billion U.S. dollars this year, a significant drop from its February projection of 27-and-a-half billion dollars.

The projected figure is equivalent to one percent of the nation’s gross domestic product(GDP), down from last year’s percentage of one-point-eight with a 29-point-eight billion-dollar surplus.

In downgrading the outlook, the KDI cited worsened terms of trade following aggravated conditions both at home and abroad and the fact that domestic demand showed relatively smooth trends.

The institute said even though South Korea’s external soundness could be affected by a prolonged deficit in the current account, there is little possibility the nation will witness a financial crisis when considering the current stability.