232. According to available official data, after a decade of economic stagnation inthe late 1970s and early 1980s, recent performance shows declining per capita real GDP and investment, increasing imbalances in domestic and external payments andaccelerating inflation. One result of the growing imbalance in external payments has been the extreme shortage of foreign exchange, Ieading to an increasingscarcity of imported consumer goods and a sharp dectine in raw materials andintermediate goods which, in turn, has led to a progressive fall in value added inthe non-agricultural sectors of the economy. In addition to the severe scarcity offoreign exchange, there has been in recent years a drying-up of trade and commercial credits, Iarge commercial payments arrears and unmitigated strains on Government finances. Commercial activity and employment have fallen. 233. The two-tier exchange rate system, which the @vernment adopted in December 1982 with a view to drawing foreign resources to the official banking system and conseguently reducing parallel market activities, was abolished inJuly 1983, and the rates unified at leones (Le) 2.50 to the US dollar. Progressive worsening of the balance-of-payments deficits and the continued existence of aparallel market in which the leone was being traded at increasingly large discounts necessitated a further devaluation on 2l February l9g5 to $US I = Le 5. Despitethis, however, trading in the leone continues in the parallel market at a largediscount. Given the existence of a parallel market (due to a perception by thetrading community that the balance-of-payments deficits reflects an overvaluationof the currency) and a severe foreign exchange shortage, export earnings arediverted from the banking system into the parallel market. Onl.y by a combinationof appropriate domestic economic and fiscal policies and adequate balance-of-payments support can this situation be corrected. /"'A/ 40 / 44L English Page 82 2. National accounts
**Analysis**
The text appears to be discussing the economic situation of a country, specifically the decline of its economy, trade, and employment. It highlights the issues of foreign exchange shortage, imbalance in domestic and external payments, inflation, and the impact on various sectors of the economy. The text also mentions the government's policies and actions to address these issues.

**Category**
International trade, Economy