In the debut episode, WU economist Klaus Prettner and his colleague Karin Heitzmann, director of the INEQ research institute, discuss new findings regarding the economic impact of diabetes on our society. Previous estimates failed to take various types of indirect costs into account, which means that the true extent of the economic consequences has long been underestimated.

New findings on the economic costs of diabetes

Diabetes is one of the greatest global health challenges of our time: over 500 million people worldwide are affected, and the number is rising. In Austria, too, around one in ten adults suffers from this chronic condition. However, the significance of diabetes extends far beyond individual health consequences and affects the entire economy.

Klaus Prettner’s research shows that conventional methods for calculating the costs of the disease often fall short. In particular, the widely used ‘cost-of-illness’ approach overestimates or distorts costs, as it does not take sufficient account of economic adjustment mechanisms (e.g. replacement of workers) and macroeconomic interrelationships.

A holistic research approach

A new macroeconomic modelling approach, however, allows for a more nuanced assessment by distinguishing between mere shifts in consumption and effects that actually drive growth. This is because not all healthcare expenditure represents a genuine economic cost, as it remains within the economic cycle. In this interview, Klaus Prettner outlines the true cost drivers and the burdens on the economy and society.

Our first podcast episode is available on Spotify, Apple Podcasts, YouTube, and wherever you listen to podcasts. A new episode will be released every month.

Study on Episode 001

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.