Oil price increase

At the end of last year commodity prices, especially that of oil, continued to increase. Since the price of oil has great influence on the revenues of developing market economies, it can be considered a positive thing that oil’s price almost doubled after the nadir of the 1st quarter of 2016.

However, it must be noted that in the medium turn the spreading of electric cars will have a negative effect on the development of oil prices.

Political insecurity will continue in 2017. Investors are waiting to see what economic and foreign policy changes will take place in the USA now that Donald Trump has started his presidency. By the end of 2016 the inflation rate reached 1.8 percent in Hungary – a record height in the last 3.5 years. According to recent forecasts, by the end of this year the rate of inflation will approach the 3-percent target of the central bank.