After declining in 2020, global healthcare spending will rise by 6%in 2021
The Economist Intelligence Unit (The EIU) has released its Industries in 2021 report today, which forecasts growth and assesses key risks in six business sectors, including healthcare, for 2021.
Ana Nicholls, Director of Industry Operations at The Economist Intelligence Unit, says:
“The healthcare and pharmaceutical industries have never come under so much global scrutiny as they have during the coronavirus pandemic, when their ability to provide care, equipment and medicines has been in doubt. That scrutiny will not disappear in 2021. The world is waiting impatiently for the arrival of a coronavirus vaccine; it is also more conscious than ever of gaps in care, whether at old peoples’ homes, at rural clinics, or in cancer wards.”
The pharmaceutical sector will continue to be under pressure to develop a coronavirus (Covid-19) vaccine, but this will be an unprecedented challenge. Some of the leading candidates are new types of vaccines with no track record of approval, while the more traditional vaccines being developed by China and Russia may be difficult to produce at scale effectively. Even once a vaccine is ready, distributing it will require the mobilisation of huge resources, from airlines to syringe producers to rural health workers.
Key takeaways for the healthcare sector include:
After declining in 2020, global healthcare spending will rise by 6% in 2021, driven in part by Covid-19 care, especially vaccine procurement.
However, public and private healthcare budgets will be tight and pricing pressures may force restructuring among healthcare funds, providers and suppliers.
Asia will have among the fastest growth in health spending as countries, including China, make yet more progress towards universal healthcare.
You can download the full report here.