The International Monetary Fund (IMF) has again lowered South Korea's economic growth forecast for this year.

In its annual report released on Thursday local time, the IMF forecast that South Korea’s economy will grow three percent this year, down a quarter percent from an initial forecast issued in June.

The IMF’s announcement comes on the heels of policy consultations with the South Korean government and marks the third time for the global agency to mark down South Korea’s growth outlook this year.

The IMF also projected that South Korea’s economy will grow three-point-nine percent next year, slightly lower than an outlook issued in April.

The IMF also did not rule out the possibility of further slashing South Korea’s growth outlook to the two percent level when it releases an update to its World Economic Outlook report next month.

However, the IMF noted that South Korea’s financial soundness did improve some due to growth in foreign exchange reserves.