mic sectors. At the same time, the annual exports of cocoa of about USD 100 million leads to an appreciation of the local currency having a negative impact over the other exports. Nevertheless, the net effects on economic output are positive as more is supplied to the domestic markets.
Short-term employment is also negatively impacted, being driven once again by a further reduction in public expenditure. The loan agreement implies a fixed price of cocoa exports and therefore the government needs to compensate producers for any differences between this fixed price and market prices, affecting public expenditure levels. However, the medium and long-term employment levels of the 'resource-secured loans' scenario are higher than those in the other two scenarios as the overall economic activity is boosted by increased investment levels.
Past 2033 when the export agreement ends, the GDP gains start to reduce as the economy re-adjusts to the lower levels of agricultural demand. There is also an immediate impact of a higher employment as public expenditure has a marked increase, both loan repayment and cocoa producer compensation terminate. Simultaneously, the depreciation of local currency enables higher levels of exports stimulating economic activity outside agriculture.