Poland likely to avoid recession this year

Poland will probably enjoy a small economic growth and avoid a recession this year, according to Mateusz Morawiecki, the Polish prime minister.

Most likely, it is. The main European economies may experience a hard landing but we'll avoid a recession, according to Morawiecki, the state-owned broadcaster TVP at the World Economic Forum in Davos, Switzerland on Wednesday.

According to the prime minister, public investment is the best way out of the recession. As much investment as possible, including public investment, replaces what is missing and what I regret about private investment, Morawiecki said.

The prime minister said that Poland's inflation may enter a downward trend from March or April.

There are declines in the prices of commodities. Poland's inflation decreased from the record high of 17.9 percent in October to 17.5 percent in November and 16.6 percent in December. A series of price hikes in January will likely give a second boost to inflation at the beginning of the year.

The prime minister said that he had been asked in Davos how the Polish government could raise defence spending to four percent of GDP this year without increasing the deficit.