Company: ADZCF
Filing Date: 2025-03-13
Form Type: 20-F
Source: 0001159508-25-000020
Chunk: 78

Company: DEUTSCHE BANK AKTIENGESELLSCHAFT
Filing Date: 2025-03-13
Form: 20-F
Chunk 78
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. Despite headwinds from a weak property market, China's economy grew by 5.0% in 2024, aided by stronger fiscal support in the second half of the year. Subdued growth among trading partners constrained foreign trade momentum. With inflation at 0.2%, the People's Bank of China implemented easing monetary policy measures.

| 48 |

| Deutsche Bank                   |
| Annual Report 2024 on Form 20-F |

2025 Outlook Statements in this section are based on the Group’s expectations regarding future economic and industry developments in 2025. The global economy is expected to expand at 3.2%, a similar pace to last year. However, increasing trade barriers and risk of widespread trade tariffs are likely to hinder stronger momentum and limit the decline in inflation, which is expected to remain at 4.0%. The growth momentum of developed countries is likely to be driven by the continued recovery of various key regions. However, higher tariffs could limit GDP growth to 1.8%. Inflation in developed countries is expected to continue to normalize initially and stay at 2.5%. Growth in emerging markets could also be negatively impacted by higher trade barriers. Export demand from developed countries is likely to weaken, at least in the second half of the year. GDP is expected to expand by 4.1%. Inflation is likely to continue to normalize to 4.9%. Strong growth drivers are likely absent in the Eurozone, as key member states adopt a more restrictive fiscal policy and Germany continues to be hampered by weaker competitiveness. GDP is expected to expand by only 0.8%. Higher U.S. tariffs threaten to further dampen momentum, while the weakening of inflation to 2.0% is likely to allow the ECB to make further interest rate cuts. The German economy is likely to expand by just 0.5%, driven solely by private and government consumption spending. The cooling of the labor market could dampen the recovery of private consumption. Structural competitive disadvantages and growing trade barriers are also likely to limit growth. With likely noticeably declining interest rates, construction could gain momentum. Inflation is likely to stay at 2.2%. Underlying growth momentum in the U.S. economy is expected to remain solid, with the labor market and private consumption holding up robustly. Tax cuts are likely to provide tailwinds, leading to GDP growth of 2.6%. However, the expected increases in import tariffs could ultimately be inflationary. The inflation rate is expected to be 2.