Seoul: South Korea's state-run economic think tank on Tuesday maintained its growth outlook for the local economy at 0.8 percent for this year, attributing the decision to ongoing weaknesses in construction investment.

According to Yonhap News Agency, the Korea Development Institute (KDI) kept its latest projection unchanged from its May forecast. However, this figure reflects a significant reduction from the 1.6 percent estimate that was announced in February. Looking ahead to 2026, KDI anticipates the economy will grow by 1.6 percent, a figure that also remains consistent with the forecast from three months prior.

The KDI explained that although there have been upward revisions in consumption and export forecasts for this year, the decline in construction investment has compelled the institute to hold steady on its overall growth prediction.