Healthcare Spending and GDP
Health care’s share of the Gross Domestic Product (GDP) has always waxed and waned. This reflects different rates of spending and different periods of economic growth and slowdown. To illustrate, consider the share of GDP health care has comprised over the relatively recent past. For the duration of the 1980’s, health spending remained stable at around 8% of GDP. When the economy fell in 1990, however, health spending as a share GDP rose to 10% by 1992. In an attempt to save money in the struggling economy of the time, governments greatly reduced health spending in 1992 for five years, and health costs dropped to less than 9% of GDP. Canadians became alarmed about problems in the health care system which resulted in political pressure to increase funding starting in 1997.