Botswana will continue to benefit from strong macroeconomic conditions, which will drive apositive outlook for consumer-oriented industries. Over our five-year outlook to 2021, fiscal stimulus aswell as modest inflationary pressures will keep consumer spending upbeat, albeit we caution thatpersistently high unemployment will weigh on purchasing power.
We forecast real GDP growth to decelerate modestly to 3.3% in 2017, down from an estimated 4.3% in2016. Our Country Risk team has revised down our economic growth figure for 2017, with real GDPgrowth previously forecast at 4.6%. This is on the back of sustained weakness in the country's diamondindustry and diminishing impact of base effects following a recession in 2015 that has been weighing onheadline figures.