Global spending on health is expected to increase to $18.28 trillion worldwide by 2040

Posted on April 19th, 2016

Global inequities in health spending are expected to persist and intensify over the next 25 years, according to a new study that estimates total health financing in countries around the world. Published in The Lancet on April 13, 2016 “National spending on health by source for 184 countries between 2013 and 2040″ draws from a joint research collaboration between the World Bank Group and the Institute for Health Metrics and Evaluation (IHME) at the University of Washington.
This first-of-its-kind study details total health spending and compares these data across income levels and geographies through the year 2040 for 184 low-, middle-, and high-income countries. The study also marks the first time distinct sources of health expenditure have been examined: government health spending, private spending – both out-of-pocket and prepaid health expenditures like insurance – and development assistance for health. The study reports annual estimates as a share of gross domestic product (GDP) and in purchasing-power, inflation-adjusted dollars, to maintain continuity with other health spending benchmarks.
More resources are expected to be spent on health in the future with a projected 9% of GDP globally allocated to health spending by 2040, but there will be substantial variation in the levels of health investments. Past trends and relationships suggest that low- and lower-middle-income countries will spend the least on health, even when estimates include foreign aid from donor countries. High-income countries are expected to spend $9,019 per person on health in 2040, compared to the projected $1,935 for upper-middle income countries, $507 in lower-middle income countries, and $164 in low-income countries.
In all, 35 low- and lower-middle-income country governments will likely not meet the international benchmark established by the Chatham House of spending $86 per person to provide primary healthcare. Many countries in sub-Saharan Africa are predicted to be the lowest spenders on health.

Source: World Pharma News