The past year – when the country took in more than a million migrants and refugees – had been unusually challenging, she said in a pre-released text of the speech, also bracing Germans for more hardships ahead.
But she stressed that in the end it would all be worth it because “countries have always benefited from successful immigration, both economically and socially”.
With a view to right-wing populists and xenophobic street rallies, she said “It’s important we don’t allow ourselves to be divided.”
“It is crucial not to follow those who, with coldness or even hatred in their hearts, lay a sole claim to what it means to be German and seek to exclude others.”
Merkel, faced with opposition in her conservative camp and popular concerns about the influx, has vowed steps to reduce numbers in 2016.
Her plan involves convincing other European Union members to take in more refugees, so far with little success, and an EU deal with gateway country Turkey to better protect its borders.
Merkel said “there has rarely been a year in which we were challenged so much to follow up our words with deeds”.
She thanked volunteers and police, soldiers and administrators for their “outstanding” accomplishments and “doing far, far more than their duty”.
Looking to 2016, she said: “There is no question that the influx of so many people will keep demanding much of us. It will take time, effort and money.”
Merkel has earned both praise and criticism at home and abroad for her decision to open Germany to a record wave of refugees, about half from war-torn Syria.
Germany took in almost 1.1 million asylum seekers this year, five times 2014’s total, the Säechsische Zeitung regional daily reported on Wednesday citing unpublished official figures.
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