Migrants to boost German growth by 0.25 percent points next year: DIW

BERLIN (Reuters) - German economic growth will probably be around 0.25 percentage points stronger in 2016 than it would have been without an influx of migrants, the Berlin-based DIW economic institute said on Wednesday. The German government is expecting 800,000 new arrivals this year, with many drawn by the generous welfare system and relatively liberal asylum laws that Europe's largest and richest economy offers. DIW economist Ferdinand Fichtner told Reuters the extra growth would come from more public spending as authorities finance the accommodation, schooling and integration of migrants, boosting the government consumption element of gross domestic product (GDP). Private consumption will probably also increase as refugees are likely to spend a large part of the financial aid they get on their personal needs, he added. Fichtner said the economic boost from the migrant influx would be primarily reflected in next year's GDP reading. The DIW is sticking by its forecast that the German economy will expand by 1.8 percent this year and by 1.9 percent next year despite weakness in markets like China, Brazil and Russia. (Reporting by Klaus Lauer; Writing by Michelle Martin; Editing by Catherine Evans)