The state-run Korea Development Institute(KDI) revised down its growth outlook for the country's economy this year from two-point-six to two-point-five percent.

In announcing the revision on Thursday, the KDI cited sluggish domestic demand amid a prolonged high interest rate trend, leading to low growth in private consumption, as well as slowed investment.

The KDI revised down growth forecast in private consumption from one-point-eight to one-point-five percent, and in facilities investment from two-point-two to zero-point-four percent.

Despite the stagnant situation at home, the KDI forecast exports to further expand centered around the semiconductor industry and the current balance to maintain the surplus trend. It upwardly revised this year's outlook on export growth from five-point-six to seven percent.

The institute also projected inflation to slow down due to the sluggish domestic demand and downward adjustment of global oil prices, revising down the previous forecast of two-point-six percent to two-point-four percent.
 
While listing risk factors, such as expansion of geopolitical threats in the Middle East, concerns over economic slump in China and the U.S., and the outcome of the U.S. presidential election, the KDI maintained its growth forecast for next year at two-point-one percent.