Investments in healthcare are investments, not expenses, writes Diena.
Healthy people have higher productivity, which means higher incomes, greater employment, and their education yields a better return. Unfortunately, Latvian society suffers from premature mortality.
"No, we are not doing badly, but there are opportunities for improvement," said Bank of Latvia economist Oleg Krasnopjorovs at the "Healthcare Economy Barometer" conference.
For example, the probability of death for a Latvian man at age 60 is the highest in Europe (2.1% in 2023). The average for the EU is less than 1%. What is 60 years? It is no longer such an old age.
Speaking about men aged 30 to 45, the most economically active age group, the economist notes that in this age group, the probability of death in Latvia is four times higher than in the EU. Reducing this figure to the level of developed European countries could save four thousand lives of working-age people each year. These saved lives have a certain economic effect.
"If four thousand lives were saved annually, over 20 years, there would be noticeable improvements in the Latvian economy. Latvia would have 60 thousand more people living, and the number of employed would increase by 40 thousand. This would be a direct contribution to the Latvian economy, ensuring an annual increase in gross domestic product (GDP) of 0.2%. Over 20 years, this would lead to a 4% growth in Latvia's GDP," calculated Krasnopjorovs.
For example, in 2023, Latvia lost 73.6 thousand potential years of life, which corresponds to economic losses of about 1.4 billion euros. This amounts to 3.4% of GDP. It should also be noted that the total direct and indirect costs associated with alcohol consumption, calculated in a study by the Ministry of Health in 2023, are estimated at 1.3-1.8% of Latvia's GDP. Furthermore, poor health is one of the factors hindering the employment of middle-aged men. Of course, this is not the only problem; outdated education and insufficient digital skills also play a role.
Investing in education is possible, but then the question arises: will there be a return on new knowledge if people are not healthy? On one hand, considering the demographic issues in Latvia, the retirement age could be raised. On the other hand, raising the retirement age is not a panacea if health problems hinder employment.
