A state-run think tank has warned of an economic slowdown, citing worsening external conditions and declining exports.

In its May economic report, released Monday, the Korea Development Institute used the term “economic slowdown” for the first time this year after referring to “downside risks” or “downward pressure” in its previous monthly assessments.

While total exports in April rose three-point-seven percent, they fell zero-point-six percent on a daily average basis. 

Exports to the U.S. were hit particularly hard, dropping ten-point-six percent on a daily average basis, with shipments plunging twenty-point-seven percent and eleven-point-six percent, respectively, in the tariff-hit automobile and steel sectors. 

Weakness in the construction sector, sluggish consumer sentiment and deteriorating employment conditions also contributed to the downbeat outlook.