SEOUL, 28th June, 2016 (WAM) — South Korea’s finance ministry on Tuesday said it has trimmed its growth estimate for the year, while seeking to draw up a 10 trillion Won, or US$8.45 billion, extra budget to buttress Asia’s fourth-largest economy against headwinds such as a slump in domestic and overseas demand and, more recently, Britain’s unexpected vote to leave the European Union, EU.

According to the Yonhap News Agency of South Korea, the ministry lowered its 2016 economic growth outlook by 0.3 of a percentage point to 2.8 percent, joining other private institutions that have already made downward revisions of their own growth estimates.

The government’s latest growth projection is on par with a forecast made in April by the Bank of Korea, but is slightly higher than the 2.7 percent expansion estimate by the International Monetary Fund.

Last year, the South Korean economy expanded 2.6 percent annually, decelerating from the previous year’s 3.3 percent on-year growth.

“Our economy will likely lose momentum in the second half due to sluggish exports and the end of the government-led tax-cut programmes,” said Lee Ho-seung, Director-General at the Ministry of Strategy and Finance.

“The ongoing corporate restructuring process will also have a heavy impact on employment, investment and production.”