Deutsche Bank lowers Q1 US GDP forecast to 1.5%

Deutsche Bank has lowered its GDP growth forecast for the first quarter of 2025 in the United States. The new estimate is 1.5%, which is a cut of 1 percentage point from what they previously expected. The bank cites weaker consumer spending and a negative impact from trade as reasons for this change. This revision also affects projections for the entire year. Deutsche Bank now expects inflation-adjusted GDP growth to be 2.3% for 2025, which is 0.2% lower than their earlier prediction. Additionally, the bank has increased its forecast for the unemployment rate in 2025. It now expects the rate to rise to 4.1%, up by 0.2%. This adjustment reflects concerns about potential challenges in the labor market as the economy slows down. Overall, the changes made by Deutsche Bank highlight worries about consumer demand and trade issues, which are seen as key factors influencing the U.S. economic outlook.