The state-run Korea Development Institute (KDI) said that the economy appears to be bottoming out as the decline in the manufacturing sector has somewhat eased recently.

The KDI presented the assessment in its monthly economic report on Sunday, citing that the decline in exports from the manufacturing sector and chip production have slowed.

Following last month’s evaluation that it is seeing more indicators suggesting that the economy has hit bottom, the latest diagnosis appears to have put more weight on the possibility of economic recovery.

The country’s semiconductor exports decreased 26-point-nine percent in March, but the decline slowed to a drop of 21-point-one percent in April and a fall of 16-point-seven percent in May.

Exports in the manufacturing sector plunged 41 percent in April, but the fall also slowed to a drop of 36-point-two percent in May and a decrease of 28 percent in June.

Overall exports declined six percent in June, with the trade balance turning back to a surplus of one-point-13 billion dollars.

Regarding the future outlook, the KDI said that amid continued monetary tightening in major countries, economic uncertainties remain due to a possible delay in China's economic recovery.