Unfavourable market conditions will continue to put Mozambique's consumer outlook underpressure over the short-term. Low incomes, high inflation as well as high employment rates will weigh onthe Mozambican consumer, with spending remaining low and consumer highly price sensitive, the retailmarket will develop at a tepid rate.
Despite gradual improvements in economic growth and an uptick in our private consumption forecast over2017, we still hold a modest outlook to Mozambique's consumer spending. Our view is on the back ofunfavourable spending conditions. We are forecast a gradual decline in the country's income levels over the2015 to 2017 period. We forecast a sharp decline in Mozambique's GDP per capita reaching a lowof USD414 in 2017, down from an average of USD517 between 2007 and 2014. We believe the retailmarket will be largely deterred by a weakening consumer outlook, amid a dominant low-income householdconsumer base in which nearly 97% of total households earn less than USD5,000.