A state-run institute has revised down this year’s growth outlook by zero-point-three percentage point to two-point-two percent.

In August, the Korea Development Institute(KDI) said it expected the economy to expand two-point-five percent in 2024.

The institute said the economic recovery has weakened as the investment slump in the construction sector intensifies.

It said employment growth has diminished amid weak domestic demand.

Although the KDI expects the sluggish demand to pick up to some extent next year, it predicts that exports, the pillar of the economy, will slow down.

The institute also revised down its forecast for next year, from two-point-one to two percent, the same level as the nation’s potential growth rate.

The KDI said the nation’s outbound shipments could suffer a heavy blow should the incoming Donald Trump administration drastically change U.S. trade policies.

The institute predicts that inflation will be under the central bank’s target at around one-point-six percent next year, in line with a slump in demand and a drop in global oil prices.