WASHINGTON—Latin America and the Caribbean must find the fiscal space to invest more in health.
As countries in the region worry about weak growth and the sustainability of their spending, they should consider supercharging their health investments. As regional health, economic, and pharmaceutical leaders have discussed at recent Atlantic Council events, such investments could boost economic productivity significantly—if the countries direct their expenditures toward efforts that tangibly improve public health.
This edition of Economic Pulse of the Americas explores the region’s track record on public health spending and identifies areas where countries can make their health dollars count the most.
The link between health investment and productivity
A healthy population is a more productive population. Countries that spend more on health per capita tend to have longer life expectancy and higher overall productivity levels, when measured as output per hour worked. Our statistical analysis shows a strong positive relationship between overall health spending, including both public and private spending, and productivity—although correlation is not causation, and other factors play a role in productivity gains.
