The Organization for Economic Cooperation and Development has cut its 2017 growth forecast for the South Korean economy to 2.6 percent from an earlier projection of 3 percent, citing slower government spending next year.

In its latest global economic outlook, the OECD said Asia’s fourth-largest economy would slightly recover its growth momentum in 2018 with 3 percent growth. The global economy is expected to attain 3.3 percent growth in 2017 and 3.6 percent growth in 2018.

OECD’s 2017 growth projection for Korea is lower than the 3 percent forecast by the International Monetary Fund. The Bank of Korea also recently revised down its 2017 growth prediction to 2.8 percent, while the Finance Ministry expects 3 percent growth.

Global organizations as well as economic think tanks have also made downward revisions on Korea’s growth outlook for next year, citing weakened exports and sluggish domestic demand.