Germany's President Frank-Walter Steinmeier warned about the growth of far-right extremism posing a threat to the country’s economic rise and its export-oriented businesses.

"The fight against extremism is also a requirement of economic reason," Steinmeier said at an event organized by industry groups in the southwestern city of Stuttgart.

"What would be the consequence if those calling for an exit from the EU were to win? It would be nothing less than an economic catastrophe," he said, referring to the far-right AfD party’s plans to hold a referendum on the EU membership.

Steinmeier underlined that the rise of right-wing extremism was also damaging Germany’s international reputation, and the government’s plans to attract highly qualified professionals from abroad.

"We will need skilled workers from abroad if we want to be economically successful," he said and underlined that Germany may lose the competition, as highly skilled foreigners will never go to places where they are met with racism and hatred.

"Those who use xenophobia to gain votes must also understand this," Steinmeier said and called on industry groups to continue their support for social initiatives aimed at combating racism and right-wing extremism.

"We will not allow this country to be ruined by right-wing extremist ideologues," he stressed.

Germany has witnessed growing racism in recent years fueled by far-right parties and movements, which have exploited fears about a refugee crisis.

Ahead of the European Parliament elections in June, support for the far-right AfD is growing in Germany, as many voters have expressed frustration with the government due to the cost-of-living crisis and higher energy prices.

A poll published by Forsa Institute last week found that 17% of voters would give their vote to the far-right AfD, making it the second-strongest party behind the conservative CDU/CSU bloc (30%).

Chancellor Scholz’s Social Democrat Party (SPD) was at 15% in the latest poll, while their coalition partner, the Greens, was seen at 14%. The junior coalition partner, the liberal Free Democrats (FDP), was at 5%.