German industry has high hopes for 2016 with further growth forecast

Berlin (dpa) - The head of Germany‘s industry federation predicts economic output could grow by "almost 2 per cent" in 2016, reassuring businesses that Europe‘s biggest economy can fend off financial risks in the coming year."The economic situation in Germany is still driven by a very positive development in employment and private consumption," Ulrich Grillo, president of the Federation of German Industries (BDI), told dpa."The real income of households will grow significantly in the next year," he said. "The good development in the job market should continue."Grillo‘s prognosis is more optimistic than that of many economists.He concedes that many factors remain uncertain as Germany tries to accommodate a steady wave of migrants and refugees to the country, which has become a top destination in Europe for people fleeing war and misery in the Middle East and Africa."At the moment, we cannot estimate very well the extent to which the refugees will effect the overall economic performance," Grillo said, adding that the new arrivals could also contribute to growth through additional spending.Grillo also cited the cheap price of oil and modest interest rates as factors in driving German business in the new year, while unstable markets in developing countries such as Brazil or China threatened a knock-on effect for global trading.