Developments in the Rwandan economy as of the first half of 2017 have been mixed. On the upside, Rwanda's external imbalances have eased on account of improvements in global commodity prices, global and regional strengthening of growth recovery, and the external adjustment the government undertook in 2016. Inflation pressures have also eased as Rwanda and the region recover from droughts; and after depreciations in 2015 and 2016, the currency has stabilized. On the other hand, economic activity has continued to be subdued, with an annualized growth of just 3.4 percent in the first half of 2017, on account of weak domestic demand.