5 days Ago By Bibhu Pattnaik
A Goldman Sachs economist has suggested that the US economy could experience accelerated growth with increased use of GLP-1 weight-loss drugs like Ozempic . What Happened : Jan Hatzius , chief economist at Goldman Sachs, has said that US GDP could potentially grow an additional 1% if 60 million Americans were to use GLP-1 drugs by 2028. Hatzius pointed out that health-related issues such as obesity often hinder people from participating in the labor force, thereby stunting economic growth, reports Business Insider.
He further highlighted that healthcare innovation could significantly reduce the economic costs associated with poor health. “Combining current losses in hours worked and labor force participation from sickness and disability, early deaths, and informal caregiving, we estimate that GDP would potentially be over 10% higher if poor health outcomes did not limit labor supply in the US,” the outlet quoted Hatzius saying. GLP-1 drugs, including Ozempic and Mounjaro, are manufactured by Novo Nordisk and Eli Lilly and Company LLY respectively.
These drugs have proven effective in treating type 2 diabetes and obesity, leading to a surge in sales. Also Read: Eli Lilly’s Mounjaro Outpaces Novo Nordisk’s Ozempic In Weight Loss Effectiveness, Study Shows Given the U.S.
obesity rate of approximately 40%, tens of millions of Americans could be prescribed GLP-1 drugs in the upcoming years. Hatzius believes that this could lead to substantial economic benefits, including increased productivity. “The main reason we see meaningful upside from healthcare innovation is that poor health imposes significant economic costs.
There are several channels through which poor health weighs on economic activity that could diminish if health outcomes improve,” Hatzius said. “These estimates therefore suggest that obesity-related health complications subtract over 3% from per-capita output, implying an over 1% hit to total output when combined with the over 40% incidence of obesity in the US population,” he added. Why It Matters : The increased use of GLP-1 drugs could not only address the health crisis related to obesity but also stimulate economic growth.
With the U.S. grappling with high obesity rates, the potential for these drugs to improve health outcomes and boost labor force participation could have far-reaching implications for the economy.
The surge in sales of these drugs also indicates a growing market, which could further contribute to economic growth. Read Next As Race To Best ‘Miracle’ Obesity Drug Heats Up, Ozempic Maker Novo Nordisk Tests New Hybrid Drug That Can Reduce Weight Up To 25% This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image: Shutterstock © 2024 Benzinga.
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