Anchor: The state-run Korea Development Institute lowered its growth forecast for both this and next year, citing lackluster investment and the U.S.-China trade conflict. The think tank, however, did note signs of recovery in the fourth quarter, saying that the trend may continue to next year.
Park Jong-hong has this report.

Report: South Korea's economy is likely to grow two percent this year, lower than an earlier projection made back in May.

On Wednesday, the state-run Korea Development Institute(KDI) adjusted downward its estimate by point-four percentage point, citing slow exports and investment which in turn are affecting manufacturing and consumer spending.

But it did say that the fourth quarter is showing signs of recovery. 

As for economic growth in 2020, the KDI cut its estimate by point-two percentage point to two-point-three percent, but noted that currently dismal global economic conditions are likely to improve.

The KDI also predicts that greater global demand for semiconductors will push domestic economic growth upward.

The think tank, however, said that although private sector spending is projected to increase, slow income growth will curtail the strength of recovery.

It added that external risks, such as the trade dispute between the U.S. and China, may potentially dampen South Korea’s economic recovery.

In order to boost private sector demand, the KDI recommended a more accommodative monetary policy while keeping the government's expansionary fiscal policy. 

It said the central bank has room to lower its benchmark rate at least once in the next six months. 
Park Jong-hong, KBS World Radio News.