Deutsche Bank Slashes US GDP Growth Forecast to 2.5% Amid Record Government Shutdown

Deutsche Bank economists have significantly lowered their projections for the US economy, citing the negative impact of the ongoing government shutdown. The bank now expects real GDP growth to slow to 2.5% in the fourth quarter of 2025, a sharp decline from its previous estimate of 4.4%. This downward revision highlights the growing economic drag caused by the record-breaking duration of the political impasse. Analysts suggest that the disruption to government services and federal spending is weighing heavily on broader economic momentum. The forecast adjustment reflects concerns over the long-term consequences of fiscal instability on national productivity. Consequently, markets are closely monitoring the situation as the lower growth outlook could influence future Federal Reserve policy decisions.