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Government Health Spending Trends Through 2023
Shi Jie Yin Hang·2024-11-08 23:03

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights a significant decline in government health spending (GHS) per capita across 63 low- and lower-middle-income countries (LICs and LMICs) from 2019 to 2023, indicating a troubling trend for achieving Sustainable Development Goals (SDGs) [9][25][26] - The analysis reveals that the average real GHS per capita in LICs fell to approximately US$10.0 in 2023, while in LMICs, it reverted to around US$55, reflecting a broader decline in health spending priorities [56][57] - The report emphasizes the need for increased prioritization of health in government budgets to counteract funding shortfalls and achieve necessary spending levels for health services by 2030 [29][30][31] Summary by Sections Executive Summary - The report provides an overview of GHS trends from 2019 to 2023, indicating a decline in health spending and its share of general government expenditure (GGE) [25][26] - It underscores the challenges faced by countries in meeting health-related SDGs due to stagnant or declining health budgets [9][32] Trends in Government Spending on Health - The analysis shows that GHS per capita has experienced a steady decline post-pandemic, with average annual growth rates of only 0.4% in LICs and 0.9% in LMICs from 2019 to 2023, compared to pre-pandemic growth rates of 4.2% and 2.4% respectively [59][60] - The GHS-to-GGE ratio has also declined, indicating a reduced prioritization of health within government budgets, particularly in LICs where it fell to 5.6% in 2023 [65][66] Risks to Health Spending Sustainability - The report identifies 35 countries facing significant risks to GHS sustainability, with 32 of these countries experiencing a decline in the share of government spending allocated to health [28][84] - It highlights that future increases in GHS will depend on prioritizing health within government budgets and improving fiscal environments [86]