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Health Satellite Account 2010-2015: in 2015, 9.1% of GDP spent in consumption of health goods and services

December 20, 2017 10h00 AM | Last Updated: December 22, 2017 11h07 AM

The expenditure with the final consumption of health goods and services in Brazil added up to R$546 billion in 2015, corresponding to 9.1% of the GDP. Of this total, R$231 billion (3.9% of the GDP) were expenditures with government consumption and R$315 billion (5.2% of the GDP) were expenditures of households and non-profit institutions serving households.

Between 2010 and 2015, the participation of services in the consumption of health goods and services in the GDP increased every year, changing from 75.9% to 79.2%. The share of medicines fell from 22.4% to 19.0%.

In 2015, the per capita expenditure with the consumption of health goods and services was R$1,538.79 for households and non-profit institutions serving households and
R$1,131.94 for government. The main expense of households was with private health services – including health plans –, reaching 3.4% of the GDP (R$204.4 billion) in 2015. The major item in the expenditure with government consumption was public health, reaching 3.1% of the GDP (R$184.3 billion) in 2015.

The consumption of health goods and services increased in every year of the time series. In 2015, the growth in volume – discounting price changes – was of 0.5% for government consumption and 1.6% for households. The consumption of non-health services dropped in both segments: government (-2.0%) and households (-3.6%).

The contribution of health-related activities to the income generated in Brazil (value added) increased in every year of the time series, changing from 6.1% (R$202.3 billion) in 2010 to 7.3% (R$375.1 billion) in 2015. Private health was the activity with the biggest weight along the time series and its share was the one that mostly increased, changing from 2.1% of the value added in 2010 to 2.8% (or R$144.4 billion) in 2015.

The Health Satellite Account 2010-2015 publication includes information on the consumption and foreign trade of health goods and services, as well as on value added and job posts in health-related activities. Access here the complete publication.

Expenditure with health goods and services represents 19.6% of final consumption of government in 2015

In 2015, the final consumption of health goods and services in Brazil was of R$546 billion. Of this total, R$231 billion (3.9% of the GDP) were expenditures with government consumption and R$315 billion (5.2% of the GDP) were expenditures of households and non-profit institutions serving households - NPISHs.

From 2014 to 2015, the share of the consumption of these goods and services in the economy rose from 8.7% to 9.1%. While the consumption of health goods and services increased 1.1% in volume, the GDP fell 3.5%, causing the rise in the share.

Between 2010 and 2015, the share of services in the consumption of health goods and services in the GDP increased every year, changing from 75.9% to 79.2%. The share of medicines fell from 22.4% to 19.0%.

From 2010 to 2015, the expenditures with the final consumption of health goods and services swung between 18.5% (2012) and 19.6% (2015) of the final consumption of government. In the case of households, the expenditures with the consumption of health goods and services changed from 7.3% of the total final consumption in 2010 to 8.2% in 2015.

The consumption of health goods and services increased in every year of the time series. In 2015, the growth in volume – discounting price changes – was of 0.5% for government consumption and 1.6% for households. The consumption of non-health goods and services by government fell 2.0% in 2015, whereas the consumption by households dropped 3.6%.

Household expenditure with health goods and services is higher than government´s

In 2015, the per capita expenditure with the consumption of health goods and services by households and non-profit institutions serving households was R$1,538.79. The per capita consumption of government was R$1,131.94.

The major expense of households was made with private health services (including health plans). Such expenditure changed from 2.5% of the GDP in 2010 (R$97.8 billion) to 3.4% of the GDP in 2015 (R$204.4 billion). The consumption of medicines accounted for nearly 1.5% of the GDP in this period, reaching R$92.5 billion in 2015.

The major item in the consumption expenditure of government was public health, which represented 2.7% (R$105.6 billion) of the GDP in 2010 and 3.1% (R$184.2 billion) in 2015. The government expenditure with private health services was 0.6% of the GDP (R$36.2 billion) in 2015 and the expenditure with medicines for free distribution was 0.2% (R$10.9 billion) in 2015.

As a result, government expenditure with health services is higher than that of households, though the latter was higher than the former when expenditures with medicines were considered.

Final consumption, in percentage of the GDP, by institutional sector,
according to products - Brazil - 2010-2015
Products Final consumption, in percentage of the GDP,
 by institutional sector (%)
2010 2011 2012 2013 2014 2015
 
Households
Total 4.3 4.2 4.4 4.5 4.8 5.1
Medicines for human use 1.6 1.5 1.5 1.5 1.5 1.5
Pharmaceutical preparations 0.0 0.0 0.0 0.0 0.0 0.0
Equipment and instruments for medical and dental use 0.0 0.0 0.0 0.0 0.0 0.0
Other materials for medical, dental and optical use, including prosthesis 0.1 0.1 0.1 0.1 0.1 0.2
Private health 2.5 2.6 2.7 2.9 3.1 3.4
 
Government
Total 3.6 3.5 3.4 3.5 3.7 3.9
Medicines for human use 0.2 0.2 0.2 0.2 0.2 0.2
Public health 2.7 2.7 2.6 2.8 2.9 3.1
Private health 0.7 0.6 0.6 0.6 0.6 0.6
 
Non-profit institutions serving households
Total 0.1 0.1 0.1 0.1 0.1 0.1
Private health 0.1 0.1 0.1 0.1 0.1 0.1
Source: IBGE. Diretoria de Pesquisas. Coordenação de Contas Nacionais.

Whenever transfers like those to private drugstores are taken into account in addition to the final consumption, government expenses represented 45.1% of the health funding and household expenses, 53.6%.

From 2010 to 2015, the expenditures with the Aqui tem farmácia popular program – which transfers resources to private drugstores to pay for medicines acquired by households – changed from R$238 million to R$2.8 billion.

Concerning the exports of health goods and services, 26.3% of the pharmaceutical preparations – like gauze, bandages, iodine, hydrogen peroxide, etc. – available in Brazil in 2015 were exported. On the other hand, 77.4% of pharm-chemicals – raw material for the production of medicines –, 37.1% of other dental and medical materials and 26.3% of medicines for human use were imported.

Health activities generate 7.3% of Brazilian income in 2015

The contribution of health-related activities to the income generated in Brazil (value added) increased in every year of the time series, changing from 6.1% (R$202.3 billion) in 2010 to 7.3% (R$375.1 billion) in 2015. Private health was the activity with the biggest weight along the time series and its share was the one that mostly increased, changing from 2.1% of the value added in 2010 to 2.8% (or R$144.4 billion) in 2015. While the health-related activities remained virtually stable in 2015, changing -0.1% in volume, the non-health ones dropped 3.4%.

Participation of health activities grows in job posts

The number of jobs in health-related activities changed from 5.2 million in 2010 to 6.5 million in 2015, an increase of about 1.3 million job posts. Nevertheless, this figure did not correspond to the number of employed persons, since that an individual might take more than one job post.

While the number of job posts in non-health activities fell 3.8% in 2015, it rose 3.5% in the health activities. Among the health activities, private health and public health topped the number of jobs. The number of job posts in these activities increased 3.8% and 6.9%, respectively, considering that the number of jobs in public health had retreated 3.2% in 2014.

As their number of job posts increased more than the average of the economy, health-related activities increased their share in the total number of job posts, changing from 5.3% of the jobs in 2010 to 6.4% in 2015.