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Ozempic could grow the US economy, according to Goldman Sachs

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Ozempic could grow the US economy, according to Goldman Sachs

There are great hopes for the Ozempic weight loss injection – not just in the USA. Getty Images

The US economy could experience a growth spurt if more people use so-called weight loss injections such as Ozempic to lose weight.

The investment bank Goldman Sachs predicts that if 60 million Americans use such a drug, the US gross domestic product would increase by one percent.

“The main reason we see economic recovery from healthcare innovation is that poor health has significant economic costs,†the bankers said.

This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.

The more people use an Ozempic weight loss injection, the faster the US economy will grow, estimates Goldman Sachs. The investment bank predicted in a statement last Thursday that the gross domestic product (GDP) of the US would grow by one percent if by By 2028, 60 million Americans would be taking so-called GLP-1 drugs.

How does the weight loss injection affect the US economy?

Goldman Sachs believes poor health weighs on economic growth because it can severely impact labor supply and overall working hours through increased absenteeism, premature death and informal care taking people out of the labor market.

“The combination of current losses in hours worked and labor force participation due to illness and disability, premature deaths and informal care means that GDP would potentially be over ten percent higher if poor health outcomes reduced the workforce “We would not restrict the supply of oil in the USA,” said Goldman Sachs economist Jan Hatzius.

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A drug that has shown great success in improving a variety of health outcomes for patients could ultimately have a significant impact on the entire economy.

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After weight loss injection Wegovy: Now come the diet pills – pharmaceutical companies sense a huge business

Obesity puts a strain on the economy

“The main reason we see significant benefits from health care innovations is that poor health has significant economic costs,†said Hatzius. “There are several pathways through which poor health weighs on economic activity, which could be reduced as health outcomes improve.â€

Novo Nordisk and Eli Lilly’s GLP-1 drugs are sold under the brand names Ozempic and Mounjaro to treat type 2 diabetes, and Wegovy and Zepbound to treat obesity.

The drugs have seen a huge surge in sales as they cause dramatic weight loss of about 20 percent of body weight and show encouraging signs of improving the symptoms of sleep apnea – pauses in breathing during sleep and reduce the number of strokes and heart attacks.

With the obesity rate in the United States hovering around 40 percent, many Americans could be taking these medications in the coming years.

Read too

I lost weight with Ozempic – but I’m glad I’m not taking it anymore

The US economy could grow by several percentage points more

Goldman estimates that between 10 million and 70 million Americans will be taking a GLP-1 drug by 2028. The wide range is due to uncertainties regarding adequate care, insurance coverage and clinical study results.

“If GLP-1 consumption ultimately increases to this extent and leads to lower obesity rates, we see scope for significant impacts across the economy,†said Hatzius.

A side effect would be an increase in productivity. Hatzius cited scientific studies showing that overweight people are both less likely to work and less productive when they work.

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“These estimates suggest that health complications related to obesity subtract more than three percent from per capita production, meaning that overall they affect more than one percent of total production when considering those over 40 -percent prevalence of obesity in the US population is taken into account,†explained Hatzius.

And if there are even more productivity gains from improved health outcomes, the impact on GDP growth could be between 0.6 percent and 3.2 percent above current trends.

“Historically, health advances have reduced the number of years of life lost to illness and disability in German economies by ten percent per decade, and we estimate that a 10-year advance in health developments above current trends would be the US -GDP could increase by one percent,” said Hatzius.

Goldman Sachs

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