Global spending on health: coping with the pandemic

Book excerpt: The report shows that global spending on health continued to increase in 2021, the second year of the pandemic, to US$ 9.8 trillion (10.3% of global GDP). The increase in spending was driven by higher government spending and out-of-pocket spending. In low income countries, external aid for health played an important role in supporting government spending. Sustaining government spending and external aid at 2021 levels could, however, prove challenging given the deterioration in global economic conditions, rising inflation and increased debt servicing obligations. The report also capitalizes on disaggregated spending information to provide new insights into the dynamics of increased global spending on health through the pandemic. Using data disaggregated by health service providers it shows some of the ways that health service delivery systems coped with the COVID-19 pandemic. Hospitals, ambulatory care providers, and pharmacies accounted for most health spending. Shifts were observed, however, in the composition of services within provider types, reflecting the new and evolving demands through the pandemic. Disaggregated spending data by disease and condition also shows a delicate balance between spending on COVID-19 and other diseases was maintained. The report also examines countries’ health capital investment, which shape current operational capacity and are essential for forging a path toward effective and resilient health systems.