Economics

Diabetes costs the global economy trillions

05/01/2026

Klaus Prettner studies the global and national economic costs of diabetes.

Diabetes mellitus is a chronic metabolic disorder and one of the most prevalent diseases worldwide. On average, one in ten adults is affected – and the estimates are similar for Austria. The number of people living with diabetes continues to rise, posing an increasing challenge for healthcare systems and entire economies. A new study reveals the global and national economic costs of diabetes – and offers strategies to reduce them.

The research team including experts from WU Vienna and the International Institute for Applied Systems Analysis (IIASA) has calculated the economic impact of diabetes across 204 countries from 2020 to 2050. The findings are striking: Excluding informal care provided by family members, global costs amount to approximately US$ 10 trillion – equivalent to 0.2% of the annual global GDP. When informal care is factored in, costs soar to as much as US$ 152 trillion, or 1.7% of GDP. This is particularly significant for diseases like diabetes. “Caregivers often drop out of the labor market, at least partially, which creates additional economic costs,” explains WU economist Klaus Prettner.

Although diabetes is more common in lower-income countries, the United States bears the highest absolute costs, followed by China and India. For Austria, the projected costs total around US$ 19 billion over the 30-year period. Including informal care, this figure rises to US$ 206 billion, or 1.5% of the annual GDP.

World map colored by share of diabetes costs in GDP

Costs of diabetes as percentage in total GDP in 2020-2050

© Chen et al, 2025
Klaus Prettner
Innovative methodology delivers more accurate estimates

“Previous estimates of diabetes-related costs were often based on overly simplified assumptions and tended to ignore economic dynamics,” says Prettner. This study’s innovative approach incorporates labor market effects, such as work absences due to caregiving responsibilities. It also recognizes that healthcare spending does not necessarily reduce economic output but often represents a shift from consumer spending toward health sector spending.

Urgent need for policy action

When compared to other diseases over the same period, such as Alzheimer’s, dementia, or cancer, the economic impact of diabetes is enormous. The authors emphasize that the most effective way to prevent diabetes and reduce its economic impact lies in promoting healthier lifestyles. Regular physical activity combined with a balanced diet can significantly lower the risk of developing the disease. In addition, early detection plays a crucial role: comprehensive diabetes screening programs for the entire population, along with rapid diagnosis and timely treatment for individuals showing symptoms or risk factors, are essential steps toward mitigating both health and economic consequences.

Referece

Simiao Chen, Zhong Cao, Wenjin Chen, Jinghan Zhao, Lirui Jiao, Klaus Prettner, Michael Kuhn, An Pan, Till Winfried Bärnighausen & David E. Bloom (2025). The global macroeconomic burden of diabetes mellitus. In: Nature Medicine (2025). https://doi.org/10.1038/s41591-025-04027-5 

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