News: Health sector to reach 20% GDP by 2033, report says

National expenditures are projected to increase by 7.1% in 2025 according to a new economic estimate from Health Affairs.

The estimate, entitled “National Health Expenditure Projections, 2024-33: Respite Insurance Coverage Declines, Health To Grow As Share of GDP,” details health spending, growth, and estimated demand for the next decade or so.

According to the authors, for the full 2024-2033 project period, “national health care expenditure growth (averaging 5.8 percent) is expected to outpace that for the gross domestic product (GDP; averaging 4.3 percent) and to result in a health share of GDP that reaches 20.3 percent by 2033 (up from 17.6 percent in 2023).”

The optimistic forecast is reflective of “sustained high growth” seen in the use of “health care services and goods” following the COVID-19 pandemic.

By 2033, the health sector of the economy is projected to reach approximately 20% of all goods and services produced.

Editor’s note: To read the Health Affairs article, click here.