This page showcases some of the European Observatory's work on this topic. Health and the economy are inextricably linked and there is evidence which, whilst not always apparent or obvious, shows that investing in health and health systems is clearly beneficial for achieving economic objectives.

A healthy population is a precondition for sustainable development and a strong macroeconomy. In turn, a strong economy is necessary to generate sufficient resources for health systems. Yet, despite this mutually beneficial relationship, many governments and finance policy-makers take a less positive view of health systems expenditure. They may support the goal of universal health coverage, but have concerns that spending on health may be a drain on the economy. They may fear that, without strict regulation, health expenditures will grow inexorably, prompting calls to slow growth and cut budgets. 

These misconceptions are often due to poor or misleading data. The evidence increasingly demonstrates that it is inaccurate to characterize health systems as unproductive and health spending as a drain on the economy. There is a compelling case that health systems both improve population health and have direct and indirect effects, which positively support national economic objectives. These include macroeconomic growth, employment, antipoverty efforts and societal wellbeing. Universal Health Coverage (UHC) – providing all people with access to quality health care when they need it without causing financial hardship – is thus, not just a public good, but also key to a strong macroeconomy and part of the glue that holds societies together. 

The Observatory’s programme of work on Health and the Economy considers the evidence on how health systems benefit the broader economy. It explores: 

• the pathways by which health and health systems influence the economy;
• the metrics used to assess linkages between health and the economy;
• a specific focus on the economic implications of healthy and active ageing.  

The overall aim is to support health policy-makers in their negotiations with finance policy-makers to ensure that health systems receive sufficient and stable resources.