Expanding Services in Developing Countries, Aging Populations are Driving Global Growth in Healthcare Spending

Shortages in medical personnel worldwide weighing on real gains

CLEVELAND, Oct. 9, 2024 /PRNewswire/ -- Global healthcare expenditures are projected to rise 3.0% annually in real terms through 2028, according to Global Healthcare, a report recently released by Freedonia Focus Reports. Spending will be driven by both increasing access to myriad healthcare services in low- and middle-income countries and population growth, particularly in the cohort aged 50 and older. Through 2028, North America is projected to spend more than any other region on healthcare products and services. Although it represented only 6.3% of the global population in 2023, the region accounted for 34% of global healthcare expenditures. This is largely attributable to the US, where healthcare represented nearly 18% of GDP in 2023. Low-income countries are expected to post the strongest growth in healthcare expenditures through 2028. Rising incomes in many of these countries will support advances in healthcare expenditures. As of 2023, per capita healthcare expenditures in these regions were substantially lower than in the US or Western Europe. Rapid growth in spending will be partially attributable to the low initial base.

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Further growth in healthcare spending will be limited by shortages of medical personnel in many countries. While middle- and low-income countries will continue to suffer from the most extreme shortages, high-income countries are also projected to experience growing shortages of doctors and nurses through the forecast period. The rising shortage of medical staff in many of those countries stems from the aging population, which leads to the need for more staffing. Additionally, the stress of the COVID-19 pandemic prompted many medical personnel to retire or otherwise leave the profession.

These and other key insights are featured in Global Healthcare. This report forecasts to 2024 and 2028 the following measures related to global healthcare:

• healthcare expenditures
• healthcare expenditures per capita
• healthcare expenditures as a share of gross domestic product (GDP)
• population
• population 50 years of age and older

Healthcare expenditures are measured in real (inflation-adjusted) US dollars.

World regions include North America, Western Europe, Asia/Pacific, and all other regions. To illustrate historical trends, global, regional, and country expenditures are provided for 2013, 2018, and 2023.

More information about the report is available at:
https://www.freedoniagroup.com/freedonia-focus/global-healthcare-fw40017.htm

About Freedonia Focus Reports
Each month, The Freedonia Group publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Healthcare & Life Sciences reports can be purchased at Freedonia Focus Reports.

Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:

• total historical market size and industry output
• segmentation by products and markets
• identification of market drivers, constraints, and key indicators
• segment-by-segment outlook in five-year forecasts
• a survey of the supply base
• suggested resources for further study

SOURCE The Freedonia Group