How diabetes depletes the world economy

In many places, diabetes has an impact on daily living, healthcare systems, and the national economy. Today, about 10% of adults have diabetes, and the percentage is still rising.

Heavy financial strain is brought on by long-term care, diminished employment capacity, and unpaid care giving. The financial impact of diabetes and the need of prevention are explained in a significant international study.

Diabetes hinders economic expansion

Diabetes mellitus is a long-term illness that interferes with the body's ability to control blood sugar. Chronic sickness frequently lowers vitality, leads to difficulties, and raises medical requirements.

Diabetes has a direct impact on economic systems due to decreased job capability and increased healthcare costs. Researchers analysed the impact of diabetes in 204 nations between 2020 and 2050 using a health-based economic model.

Analysis contrasted actual circumstances with a hypothetical situation in which diabetes did not exist. The two scenarios differed in terms of lost economic production. Global losses from unpaid care giving amount to approximately 10 trillion dollars annually, or about 0.2 percent of the world's GDP.

Losses increase dramatically to up to 152 trillion US dollars once unpaid family care is taken into account.

Reduced productivity and labour

According to economic theory, labour is a major factor in growth. Diabetes lowers the effective labour supply in a number of ways. Early mortality reduces the size of the workforce. Chronic sickness increases absenteeism from work and reduces productivity. Over time, lower participation reduces national production.

Additionally, providing care takes employees away from paid occupations. In order to support daily care demands, family members frequently cut back on work hours or quit their jobs.

According to WU economist Klaus Prettner, one of the study's authors, "carers frequently drop out of the labour market, at least partially, which creates additional economic costs."

Approximately 85 to 90 percent of all economic losses can be attributed to unpaid care. Millions of people require ongoing daily assistance because the incidence of diabetes is still far higher than the death rate.

Diabetes affects how much money is spent

Capital accumulation is also a key component of economic models. Investments in industries, equipment, and technology are typically financed by savings. Treatment for diabetes diverts a portion of public and family spending from investments in healthcare.

Because advanced care is still widely accessible, treatment expenses are higher in high-income economies. Due to delayed diagnosis and restricted access, low-income areas experience lower treatment costs but greater production losses. Michael Kuhn, the Acting Economic Frontiers Research Group Leader at IIASA, co-wrote the study.

The Czech Republic has the largest burden as a percentage of GDP at 0.5%, followed by the United States and Germany at 0.4%, according to Kuhn. "To some extent, these rankings reflect the size of the economies included in our analysis in terms of GDP and population," he said.

"The highest per capital economic burdens are in Ireland, Monaco, and Bermuda, at $18,000, $12,000, and $8,000, respectively."

Inequality between income levels

The percentage of costs associated with capital diversion and treatment is higher in high-income nations. In affluent areas, medical expenses account for about 40% of economic losses. Treatment only makes up around 14% of losses in low-income areas.

According to Kuhn, "this is a stark illustration of how medical treatment regimes for chronic diseases like diabetes are accessible to high-income countries only." Because they receive less medical benefits and have higher illness loads, lower-income areas have higher rates of disability and mortality.

Costs increased due to the pandemic

An additional layer of economic harm was caused by COVID-19. Diabetes raises the risk of fatalities and serious infections. Additionally, after recovery, COVID-19 increases the risk of type 2 diabetes.

Economic losses associated with diabetes increase significantly when pandemic impacts are incorporated into models. During the pandemic years, diabetes-related GDP losses increased noticeably in China, the US, and Germany.

Improved diabetes cost estimates

Simple accounting techniques were frequently utilised in earlier cost studies. Macroeconomic theory, labour participation statistics, educational attainment, and capital investment trends were all used in recent studies.

Prettner claims that earlier estimates of diabetes-related expenses frequently ignored economic dynamics and relied on unduly simplistic assumptions. According to Prettner, "this study's innovative approach incorporates labour market effects, such as work absences due to care giving responsibilities."

"It also acknowledges that healthcare spending frequently reflects a shift from consumer spending towards health sector spending, rather than necessarily lowering economic output." Such modelling demonstrates how growth is subtly slowed over decades by chronic illness.

Preventing diabetes is essential.

Diabetes causes far more long-term economic damage than cancer, dementia, or Alzheimer's disease. The best course of action is prevention. Healthy body weight, balanced foods, and regular exercise all considerably reduce risk.

Early screening finds illness before problems arise. Timely care maintains productivity and safeguards health. According to Kuhn, "such steps are particularly relevant for low-income countries, where high levels of under diagnosis and its role in raising mortality from infectious diseases render diabetes a severe risk factor for the stability of health care systems."

Blood sugar is just one aspect of diabetes. Long-lasting repercussions are felt by families, economic systems, and future growth. Prosperity and health are safeguarded by early action.