ⓒYONHAP NewsThe government says the nation’s economy will lose steam next year, with growth slowing to one-point-six percent, bogged down by a global recession.

The official 2023 economic policy direction released by the finance ministry on Wednesday outlined the grim economic forecast by the government.

The revised figure is zero-point-nine percentage points lower than the previous government outlook announced in June and gloomier than those by the Korea Development Institute(KDI) and the Bank of Korea. The two agencies earlier predicted growth of one-point-eight percent and one-point-seven percent, respectively.

There have only been five instances in modern Korean history where the nation’s growth dipped below two percent, the latest of which was in 2020 when the economy contracted zero-point-seven percent due to the pandemic. It then turned around and posted growth of four-point-one percent last year.

The policy direction document said sluggish trade and high interest rates will impede recovery next year in areas such as exports and domestic demand.