The global investment bank Morgan Stanley forecasts that the South Korean economy will hit a low point in the fourth quarter of this year before modestly rebounding next year.

In its Asia outlook report for next year, the bank projected two-point-one percent growth for Korea in 2020.

It said the South Korean economy will hit bottom in the fourth quarter of this year amid a tentative letup in the U.S.-China trade war and a slight recovery in the global economy.

The bank added that the pace of Korea's economic recovery will quicken next year in part supported by the government's expansionary policy and fiscal easing.

It also predicted that the Bank of Korea will likely cut the key interest rate in January to a historic low of one percent.