The Korea Development Institute(KDI) has assessed that downward risks to the domestic economy are escalating.

In a monthly assessment report released on Monday, the state-run institute said the slump in the construction sector and worsening export conditions were key factors intensifying these risks. 

In particular, the report expressed concerns over a decline in growth of exports, including that of semiconductors. 

Exports in February climbed one percent on-year but posted growth of minus five-point-nine percent on a daily average basis. 

Outward shipments of Information and Communication Technology products slipped five-point-one percent on-year last month, after a drop in the prices of general-purpose semiconductors. 

The report also noted a sharp decline in construction production, down more than 27 percent in January.