A turning point in health financing
published Sept. 10, 2025
For the first time in over two decades, global health spending decreased - falling to US$9.8 trillion, or almost 10% of global GDP. This marks a reversal after the surge in spending during the COVID-19 pandemic when governments rapidly expanded health budgets. Health financing finds itself at a critical juncture with speculation about its future trends.
Although the decrease in spending has not reached pre-pandemic levels, experts warn that the world is entering a health financing emergency. The critical question now is whether this decrease in spending is a short term correction from the pandemic peak or the beginning of a deeper shift in health spending trends.
The global decline in health spending masks important differences. Spending remained above pre-pandemic levels in all income groups, but the overall decline was driven largely by high income countries, which account for the majority of health spending. By contrast in low- and lower-middle income countries, total health spending continued to rise in 2022.
Yet, these countries face mounting pressures that could undermine future health spending. Weak economic growth, high inflation, and rising debt burdens are squeezing budgets. For low-income countries in particular, the outlook is fragile - many remain highly dependent on external aid, which finances nearly a third of health spending. But health aid has been shrinking once COVID-related surge financing is excluded, and ongoing aid cuts pose a serious risk to health systems.
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