Germany market profile

Germany is the largest economy in the European Union and the fourth largest economy in the world with a GDP of US$4,319.3 billion (A$5,885.3 billion) in 2021*.

Germany’s policy priorities are driven by a push for a reduction in greenhouse gas emissions to 65% (of 1990 levels) by 2030, reaching net zero emissions by 2045 and ensuring the country is at the forefront of global innovation.

Germany’s net zero target is driving the decarbonisation of the industrial sector. Businesses are adapting their models and processes to use renewable energies and create carbon-neutral products.

Major global automotive manufacturers in Germany are driving the development of domestic EV battery production capacity and subsequent growth in demand for critical minerals from Queensland.

Germany is modernising its industrial sector through the Industrie 4.0 policy which promotes the use of state-of-the-art ICT in production methods. The priority for industry is to expand digital infrastructure and invest in forward-looking technologies, such as artificial intelligence and finding applications for these in Germany

Like many industrialised countries, Germany faces a shrinking workforce and ageing population, presenting opportunities in healthcare and well-being, robotics and automation. As part of this, digital healthcare transformation is being accelerated.

Germany was Queensland’s 11^th largest merchandise trading partner (exports plus imports) in 2020–21. Queensland’s merchandise exports to Germany totalled A$314.8 million in 2020–21.

Queensland’s merchandise imports from Germany totalled A$1,930.1 million in 2020–21.

In 2020, foreign investment from Germany in Australia was valued at A$47 billion and foreign direct investment (FDI) was valued at A$21.7 billion (Source: ABS).

Queensland has several bilateral agreements with Germany.

The Queensland–Berlin Joint Declaration of Intent on health for the exchange of expertise, information and experience and will ensure Berlin and Queensland are at the forefront of healthcare innovation and the biomedical industries into the future.

The Queensland–Hessen program fosters collaboration between institutions of higher education in both states. The intention is to promote the exchange of students and staff between Queensland and Hessen.

Queensland and Germany also hold research and education partnerships at the institutional and industry level.

Australia and Germany established diplomatic relations in 1952. The Australia–Germany Enhanced Strategic Partnership signed in 2021 lifted cooperation to a new level.

Australia and Germany will work together on a series of new initiatives to accelerate the development of a hydrogen industry through the signing of the Declaration of Intent between the Government of Australia and the Government of Germany on the Australia–Germany Hydrogen Accord.

Queensland is well placed to attract German investment in its hydrogen industry as Germany looks to secure future supply and internationalise its technical capabilities.

With policy synergies in the promotion of research and innovation, Queensland can partner with Germany in the development of new technologies in health, medical, digital, agriculture, defence and aerospace.