Container boxes are stacked at a port in the nation's southern port city of Busan, Nov. 29. Yonhap

The sluggish performance of Korea's construction sector is limiting overall economic recovery amid growing uncertainties, a state-run economic think tank said Monday.

"Recently, our economy has faced restricted recovery momentum, particularly in the construction sector, while uncertainties continue to expand," the Korea Development Institute (KDI) said in a monthly economic assessment report.

The KDI noted that semiconductor production and exports have remained relatively robust, with related facility investments continuing to grow.

However, performance in the construction sector has continued to decline.

According to latest data compiled by Statistics Korea, the country's facility investment weakened in October, primarily due to a downturn in construction-related investments. Construction orders plunged 11.9 percent from a year earlier in October.

The KDI highlighted declining retail consumption and noted that delinquency rates among small business owners are on the rise.

The think tank also warned of potential risks to Korea's export-driven economy, citing a global slowdown in trade stemming from the second Donald Trump administration, set to take office in late January. (Yonhap)