Korea Development Institute(KDI) has noted that the domestic economy is being bogged down by continued sluggish domestic demand.

The state-run thinktank said in a monthly economic assessment report released on Thursday that the recovery of domestic demand is especially slowed by delays in construction investment.

The KDI pointed to an eleven-month slowdown in domestic demand since its December 2023 report.

The institute forecasts that the accumulated weakness in leading indicators will continue the sluggish investment in construction for the time being.

KDI also reported a seven-point-five percent on-month increase in exports last month on the back of robust semiconductor exports.