The Korean economy is forecast to grow by an average of two percent next year.

According to the financial industry on Sunday, the average outlook for the South Korean economy by 20 local and international think tanks and securities firms was two percent.

The state-run Korea Development Institute (KDI) and the Korea Institute for Industrial Economics and Trade projected the economy to grow two-point-two percent and two percent, each for 2024, similar to a recent outlook of two-point-one percent by the Bank of Korea.

The KDI said that domestic consumption is expected to slow down, but exports are likely to see a modest recovery.

The International Monetary Fund, the Asia Development Bank and the Organization for Economic Cooperation and Development presented an average outlook of two-point-two percent.

Private think tanks, however, released relatively lower growth outlooks. The LG Economic Research Institute presented a pessimistic outlook of one-point-eight percent, citing lingering inflationary pressure.

KDI and the central bank projected a two-point-six percent growth in consumer prices next year, down from three-point-six percent for this year.