Deutsche Bank identifies German auto sector as key risk for its investment portfolio

Deutsche Bank identified Germany's auto sector as a key risk to its investment portfolio. The bank also highlighted the impact of potential US tariffs on automobile imports, competition from China, and a slow transition to electric cars on the German auto industry.

In addition, Volkswagen said earlier this week that it expects another challenging year for the company.

Meanwhile, Deutsche Bank CEO Christian Sewing believes the increase in the German government's spending on defense and infrastructure could have a positive impact on the country's GDP growth.

The bank’s annual report gives a high assessment of its prospects for 2025, despite the weak German economy and problems which the auto industry is facing. Deutsche Bank expects the country's GDP growth to fall behind the rest of the eurozone. 

Another key risk identified by the bank in previous years was related to commercial real estate. Nevertheless, according to Deutsche Bank, the sector should stabilize despite the existing problems.