Deutsche Bank Insights on Germany's GDP: Breaking Down Income by Activity

Deutsche Bank comments on Germany's GDP, citing income breakdown by activity, including retail banking and private banking (35.1%), investment, finance and market banking (35.6%), and asset management (8.8%). The bank managed EUR 666.3 billion in current deposits and EUR 478.9 billion in current loans at the end of 2024, with products and services marketed through a network of 1,307 branches worldwide.

Germany's economy has entered a period of renewed contraction, with the second quarter of 2025 revealing a 0.3% decline in gross domestic product (GDP) compared to the prior quarter, according to official data released in early August [1]. This marks a sharper slowdown than the initial estimate of -0.1% and reverses the modest 0.3% growth seen in the first quarter. The contraction has been attributed largely to weak manufacturing performance and the impact of U.S. tariffs on German exports [2].

In response to the deepening slump, Chancellor Friedrich Merz has pledged to address the crisis through a series of reforms, signaling a renewed focus on growth-oriented policies. Finance Minister Lars Klingbeil has emphasized that the coalition will push forward with significant economic reforms before the end of 2025 to boost competitiveness and stimulate investment [3]. These measures are seen as critical to reversing the current trend and preventing further deterioration.

Deutsche Bank AG, one of the largest German banking groups, has commented on Germany's GDP and the broader economic outlook. The bank's income is broken down by activity, with retail banking and private banking accounting for 35.1%, investment, finance, and market banking for 35.6%, and asset management for 8.8% [2]. At the end of 2024, Deutsche Bank AG managed EUR 666.3 billion in current deposits and EUR 478.9 billion in current loans, with products and services marketed through a network of 1,307 branches worldwide [2].

The recent downturn has exacerbated public concerns, with voters increasingly skeptical of the government’s ability to manage economic challenges. Reports of mass layoffs and high inflation have fueled impatience with the pace of change [5]. The political climate is now testing Merz’s leadership as he seeks to balance fiscal discipline with the urgent need for economic revival.

Despite the government’s defensive stance on its economic policy, the data leaves little room for optimism. Germany’s economic performance is now in a “danger zone,” with growth stalling and the risk of a technical recession looming [6]. The credibility of the government’s reform agenda will be measured not only by its scale but by its ability to deliver tangible results in the near term.

[1] Germany's Steeper Economic Slump Tests Merz's Growth (https://www.bloomberg.com/news/articles/2025-08-22/german-economy-shrank-more-than-estimated-in-second-quarter)
[2] Germany defends economic policy, vows more reforms by ... (https://www.cryptopolitan.com/germany-defends-economic-policy/)
[3] German Finance Chief Pledges Reforms to Reverse ... (https://www.bloomberg.com/news/articles/2025-08-22/german-finance-chief-pledges-reforms-to-reverse-economic-slump)
[4] German Economy Shrank by 0.3% in Second Quarter ... (https://www.usnews.com/news/business/articles/2025-08-22/german-economy-shrank-by-0-3-in-second-quarter-in-worse-showing-than-initially-thought)
[5] Can Germany's Merz Revive the Economy? Voters Are ... (https://www.wsj.com/world/europe/can-germanys-merz-revive-the-economy-voters-are-running-out-of-patience-651902fc?gaa_at=eafs&gaa_n=ASWzDAhjqOGX1GNd4ZlZmiJyvm_j64tSJdls792C1UaY2ZSposYCjkwSPfo0&gaa_sig=DBX8LtEg2ptbxOYFPHpfMiSSMCJJtP9p9nj3xh-mm5dba-YvKidp_HlTTemShYRctOSIjPiI9w3Fy0GsYEuYdg%3D%3D&gaa_ts=68a97aed)
[6] Germany Back in the Danger Zone: Growth Stalls Amid Tariffs ... (https://fxmag.com/stocks/germany-back-in-the-danger-zone-growth-stalls-amid-tariffs-and-stagnation)