Health Satellite-Account: 9.2% of the GDP were spent on consumption of health goods and services
December 20, 2019 10h00 AM | Last Updated: December 23, 2019 01h51 PM
Expenditure on the final consumption of goods and services in Brazil hit R$ 608.3 billion, corresponding to 9.2% of the GDP. From that total, R$ 253.7 billion (3.9% of the GDP) were relative to government consumption and R$ 354.6 billion (5.4% of the GDP) to household expenditure and non-profit institutions serving households.
Per capita expenditure with the consumption of goods and services, in 2017, was R$ 1,714.6 for households and non-profit institutions serving households and R$ 1,226.8 for the government. Private health services – including appointments with doctors and health insurance, for example – represented the main expenditure of households with health, having reached 3.5% of the GDP (R$ 231.0 billion). In final government expenditure, the main item was public health, with 3.1% of the GDP (R$ 201.6 billion).
The participation of health activities in Gross Value Added amounted to 6.1% (R$ 202.3 billion) in 2010 and reached 7.6% (R$ 429.2 billion) in 2017. The main increase in participation was that of private health services, with a change from 2.1% of the total value added of the economy, in 2010, to 3.0%, in 2017.
The publication Health Satellite Account 2010-2017 systematizes information on consumption and foreign trade of goods and services and on the value added and jobs in health-related activities. See the support material and the complete publication for additional.
Between 2010 and 2017, participation in the consumption of goods and services increased from 8.0% to 9.2% of the GDP
In 2017, the final consumption of goods and serviced in Brazil amounted to R$ 608,3 billion. From that total, government consumption expenditure amounted to R$ 253.7 billion (3.9% of the GDP), which is equivalent to R$ 1,226.8 per capita, and expenditure from households and non-profit institutions serving households (ISFLSF, in Portuguese), to R$ 354,6 billion (5.4% do PIB), which is equivalent to R$ 1,714.6 per capita.
Between 2010 and 2017, the participation of consumption of goods and services in the economy increased from 8.0% to 9.2%. That was most significant in the end of the period, confirming that at times of retrogression or reduced economic increase, consumption of goods and services tends to grow to a lower extent than other products and services.
Consumption of goods and services increased between 2010 and 2015. In 2016, nevertheless, there was decrease in volume (-1.5%), although in current values expenditure increased 6.8%. In 2017, the increase in volume was 0.6%, being 4.3% up in current values.
Government expenditure on goods and services accounted for 19.2% of final government consumption expenditure in 2017
In 2017, health services and medicines paid by the government accounted for 19.2% of the total goods and services provided to the population, which include health services, education and public administration.
In terms of government expenditure on health, the main item was public health, which represented 79.5% (R$ 201, billion) of the total government expenditure on health. The expenditure on private health services (those acquired from private establishments) corresponded to 17.2% (R$ 43,6 billion), and on medicines, to 3.3% (8.4 billion) of the total.
In terms of government consumption distribution, the main change between 2010 and 2017 was the increase of expenses related to rendering of public health services as a proportion of GDP. That percentage changed from 2.7% in 2010 to 3.1% in 2017. In the case of medicines, there was a change from 0.2% to 0.1%.
The change in volume of government consumption of health goods and services surpassed that of non-health products in the years of 2012 and 2016. In 2017, whereas consumption of health services increased 2.3% in volume, that of non-health ones recorded a decrease (-1.3%).
More than 65% of the household expenditure on health referred to private services
In the case of households, expenditure on consumption of goods and services accounted for 8.3% of the final consumption. Private health was the main expense, accounting for 66.8% of the total expenditure on health in 2017, that is, R$ 231,0 billion. Medicines accounted for 29.9% of the total and amounted to R$ 103,5 billion.
In terms of GDP, household expenditure on medicines remained stable between 2010 and 2017, accounting for about 1.5%, whereas the consumption of private health services increased from 2.5% to 3.5% of the GDP.
In 2017, whereas the consumption of health services by households fell by 0.7% in volume, that of non-health services did by 2.3%. From 2014 to 2016, the change in volume of consumption of health services by households surpassed the change of non-health services.
|Table 3 - Final consumption, in percentage of GDP, by institutional sector, by product - Brazil - 2010-2017|
|Products||Final consumptiom, in percentage of GDP by institutional sector (%)|
|Medicines for human use||1.6||1.5||1.5||1.5||1.5||1.5|
|Appliances and instruments for medical and dental use||0.0||0.0||0.0||0.0||0.0||0.0|
|Other material for medical, dental and optical use, including prostheses||0.1||0.1||0.1||0.1||0.1||0.2|
|Medicines for human use||0.2||0.2||0.2||0.2||0.2||0.2|
|Non-profit institutons serving households|
|Source: IBGE, Diretoria de Pesquisas, Coordenação de Contas Nacionais.|
Health-related activities were 7.6% of Grosso Value Added in 2017
The participation of health-related activities in Gross Value Added (GVA) was 6.1% (R$ 202,3 billion) in 2010 and reached 7.6% (R$ 429,2 billion) in 2017. The biggest increased in participation was that of private health, which changed from 2.1% of the total GVA of the economy, in 2010, to 3.0%, in 2017.
In a comparison of health-related activities with the rest of the economy, in 2017, health-related activities increased by 0.8%, whereas non-health ones, by 1.3%.
Between 2011 and 2017, the cumulative change in volume for health was 11.5%, versus 3.2% for the rest of the economy (non-health activities).
Compensation in the health sector surpass average of the economy
Heath-related activities increased their participation in the total Jobs between 2010 and 2017, with a change from 5.3% to 7.1% of the total occupations. In 2017, compensation in the health sector accounted for 9.6% of the total compensation in the economy. It was also above the average of the economy, with an annual average income of R$ 43,8 thousand in 2017 versus R$ 33,4 thousand of non-health activities.