Healthcare Spending by Country (% of GDP) – 2025 Global Ranking

Healthcare expenditure is a critical indicator of a nation’s commitment to the health and well-being of its population. Measured as a percentage of GDP, it reflects the proportion of a country’s economic resources allocated to healthcare services, including infrastructure, personnel, medications, and public health programs. Globally, the average Healthcare Expenditure (% of GDP) stands at 10.35%, underscoring the significant role of healthcare systems in sustaining economic and social stability.

High healthcare expenditure often correlates with better access to services, advanced medical technologies, and improved health outcomes. However, excessive spending does not always guarantee efficiency, as it depends on the structure and management of healthcare systems. This article delves into the global distribution of healthcare spending, highlighting the top-spending countries and trends over the years.

Top 10 Countries with the Highest Healthcare Expenditure (% of GDP)

1. Afghanistan: 21.83%
2. Tuvalu: 19.97%
3. Liberia: 16.62%
4. United States: 16.57%
5. Palau: 16.38%
6. Kiribati: 14.81%
7. Cuba: 13.79%
8. Nauru: 13.06%
9. Germany: 12.65%
10. Marshall Islands: 12.55%

The countries with the highest healthcare expenditure as a percentage of GDP vary significantly in economic status and healthcare outcomes. Afghanistan tops the list at 21.83%, driven by international aid and a relatively small GDP base. Small island nations like Tuvalu, Palau, and Kiribati rank highly due to limited resources and high dependency on imported medical supplies. The United States, a developed nation, allocates 16.57%, reflecting high healthcare costs and privatized systems. Germany stands out among developed countries for its efficient, publicly funded healthcare system, contributing 12.65% of its GDP to healthcare.

Full Table (Source: World Health Organization Global Health Expenditure Database)

Global Healthcare Expenditure Trend Over the Years

Over the past two decades, global healthcare expenditure has steadily increased, rising from 8.62% of GDP in 2000 to 10.35% in 2021. The surge in 2020, peaking at 10.87%, reflects the impact of the COVID-19 pandemic, which necessitated substantial spending on emergency healthcare services, vaccination campaigns, and public health initiatives. The consistent growth highlights the increasing prioritization of healthcare across nations.

Factors Influencing Healthcare Expenditure

• Economic Development and Healthcare Spending: Wealthier nations tend to allocate a larger proportion of their GDP to healthcare, ensuring better infrastructure and universal access. However, developing nations with limited GDP may show high percentages due to reliance on external funding and lower overall economic output.

• Impact of Pandemics and Public Health Crises: Global crises such as the COVID-19 pandemic drastically influence healthcare expenditure patterns. Countries worldwide reallocated resources to address urgent health needs, reflecting sharp increases in spending during 2020 and 2021.

The Healthcare Expenditure (% of GDP) metric provides invaluable insights into a country’s healthcare priorities and economic strategies. While high expenditure often correlates with improved health outcomes, efficiency and equitable distribution remain critical. As global challenges evolve, governments must balance spending with sustainable healthcare strategies to ensure long-term resilience.

Source

• World Health Organization Global Health Expenditure database
• Current health expenditure (% of GDP) | Data – World Bank Data