Germany expects economic benefits accommodating Syrian refugees

Continues influx of Syrian refugees in Germany has jeopardized its economy but at the same time possess economical beneficial gains in future.

Germany, beneficial in a strong financial position had suffered a huge setback due to refugee crises, but now the government is concentrating more on the possible gains than the recent losses, as reported by The Guardians.

Marcel Fratzscher, the head of the German Institute for Economic Research (DIW), has said that Germany has received thousands of newcomers this year and thousands more are expected in upcoming years.  He also added that keeping in account surplus in the public budget and the labor market, Germany has not been bestowed upon such opportunity for 70 years to deal with a challenge wisely.

The DIW concluded in a study that today Germany is facing tremendous social as well as economic crises, but accommodating them for now will prove to boost the economic sector in the next 5 to 10 years.

The commission said in an analysis, included in its autumn economic outlook released Thursday in Brussels that the possibly anticipated future gains includes elevation of Gross domestic product by about 0.1 percentage point in 2015, 0.4 points next year, 0.6 points in 2017 and as much as 0.7 points in the three years after that, as mentioned by Bloomberg Business.

 Fratzscher being the leading voice of key public policy advisers in Germany argued the possible beneficial outcomes and tried to jiggle the pessimist thoughts of government by highlighting its forthcoming demographic crisis and desperate need of workers for different organizations and that the refugees, especially young ones can help to overcome these problems.

The hopes lie largely in the very young age of most of the refugees. "Because the majority of them are under 25, there's a lot of potential there," Joachim Möller, head of the Institute for Employment Research, has said.

Germany, despite being financially strong, faces weakened infrastructure. According to the recent report of the Macroeconomic Policy Institute, the refugees would "act almost like a stimulus program", by the construction of new houses, day cares, schools as well as roads.

The huge absorption of Syrian refugees also expects the possible boost to its tobacco industries, further benefiting Germany's economy.

As reported by The Sydney Morning Herald, World Health Organization stated that 48 per cent men of the Syrian refugees are smokers. So with Syrians on average smoking more than 1,000 cigarettes a year, they could boost the tobacco sticks in Germany by more than 810 million, Gorham said.

Fratzscher warned: "It's clearly easier to gain political support at the moment by stoking fears."

He further added, "Few people dare to speak out on this issue because it's highly emotional and whatever you say you will get criticized," he said. "Until now the most prominent voices have been those that look exclusively at the government perspective, and focus on what the refugees cost now, which admittedly in the short term is enormous, rather than looking at what the refugees that come now provide to the country and the economy in the long run."