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Daily Data InsightsHealth spending has been rising across rich countries with different systems

Health spending has been rising across rich countries with different systems

A set of four line graphs showing government health expenditure as a percentage of GDP from 1990 to 2021 for Japan, Germany, United Kingdom, and United States. Japan increased from 4.5% to 9.3%, Germany from 6.1% to 11%, the UK from 4.3% to 9.9%, and the US from 4.5% to 16%. Each country is represented by its national flag and name. All graphs show an upward trend, with the US showing the steepest increase, particularly in recent years. The source is cited as Our World In Data based on Lindert (1994), OECD (1993), with a note indicating the metric includes social as well as compulsory health insurance.

Government spending on health has grown substantially across rich nations since 1990, with particularly steep increases in the United States. The chart shows healthcare spending as a share of gross domestic product (GDP) in four countries.

Japan and the UK saw their share more than double, while it more than tripled in the United States, from 4.5% to 16% of GDP. The rising costs partly reflect demographic change, as older populations typically need more medical care, as well as the COVID-19 pandemic.

Each country organizes healthcare differently. Germany requires everyone to buy insurance from regulated providers, while Japan gives everyone government insurance. The United Kingdom provides healthcare directly through its national health service, while the US combines private insurance with government coverage for the elderly and those on low incomes.

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