The Asian Development Bank(ADB) has lowered its growth forecast for the South Korean economy for this and next year by zero-point-two percentage points each.

According to the ADB's revised growth outlook on Wednesday, the regional bank forecasts the South Korean economy will grow two-point-seven percent this year, down from two-point-nine percent forecast in September.

It also expects two-point-six percent growth for next year, down from its earlier forecast of two-point-eight percent. 

The ADB explained the 90-day truce in the U.S.-China trade war will help stabilize consumer and corporate activities in the coming months, but a slowdown in Korea's export growth will not likely end in the short term due to slower growth in the Chinese and global economies.

The bank also said South Korea's low employment growth and high levels of household debt will likely contract spending.

Meanwhile, the ADB retained its previous forecast of six percent average growth for the 45 nations in the Asian region this year and five-point-eight percent for next year.