India spent 3.9% of GDP on health in 2011: OECD

23 11 2013

Dear All,

The slowdown in the world economy has adversely affected the health spending of OECD Countries. Outside the OECD countries, India spent 3.9% of GDP on health in 2011.

According to the Health at a Glance 2013 Report by OECD, the crisis has adversely affected the health spending which has decreased in one of three OECD countries between 2009 and 2011.

Spending per capita fell in 11 of 33 OECD countries between 2009 and 2011, notably by 11.1% in Greece and 6.6% in Ireland . Growth also slowed significantly in others, including Canada at 0.8% and the United States at 1.3%. Only Israel and Japan saw the rate of health spending growth accelerate since 2009 compared with the previous decade. Health spending in Korea has continued to grow at more than 6% per year since 2009 but more slowly than in previous years.

The lower spending by the Governments have been done through cutting prices of medical goods, especially pharmaceuticals, and by budget restrictions and wage cuts in hospitals. 

In 2011, the United States outspend all other OECD countries by a wide margin, with the equivalent of US$ 8,508 for each person. This level of health spending is two-and-a-half times the average of all OECD countries and 50% higher than Norway and Switzerland , which were the next biggest spending countries.

Around half of OECD countries fall within a per capita spending of between US$ 3,000 and US$ 4,500 (adjusted for countries’ different purchasing powers). The lowest per capita spenders on health in the OECD were Mexico and Turkey with levels of less than a third of the OECD average. Outside of the OECD, India spent about 4% of the OECD average on health per capita in 2011 among the key emerging economies while China spent 13% of the OECD average on health per capita in 2011.

In 2011, the US spent 17.7% of GDP on health which is well above the OECD average and around 6% points above the next group of countries, which include the Netherlands , France , Germany , Canada and Switzerland which is around 11%. Mexico , Turkey and Estonia devoted only around 6% of GDP to health. Among the emerging economies outside of the OECD, China and India spent 5.2% and 3.9% of GDP respectively in 2011, while Brazil devoted 8.9% of GDP to health close to the OECD average.

Health Expenditure as a share of GDP in 2011

Source: PHD Research Bureau, Compiled from OECD

Warm regards,

Dr. S P Sharma

Chief Economist