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High Economic and Population Growth Driving the Healthcare Delivery Market

Posted Sep 20 2010 1:10am
The Healthcare System and Delivery Network in Emerging Economies (China, India and Brazil) - Growth Opportunities Driven by Awareness, Affordability and Access

China, India and Brazil are the fastest growing emerging markets in the world. The unprecedented growth seen in these emerging economies despite the world economic slowdown consolidates their role as the key players to influence the world economy in the future. India, China and Brazil together account for about one-third of the total world population. However, the huge population base in these countries continues to face serious healthcare issues, such as the rise in diseases and inadequate infrastructure facilities, in spite of the economic development. This presents enormous growth potential for healthcare delivery in these countries. ( http://www.bharatbook.com/detail.asp?id=146131&rt=The-Healthcare-System-and-Deli )

High Economic and Population Growth Driving the Healthcare Delivery Market
According to the 2010 world development indicators by the World Bank, China, India and Brazil are respectively ranked the 2nd, 4th and 9th largest economies in the world in terms of GDP based on Purchasing Power Parity (PPP). Each of the three countries spends 4.7% (China), 5% (India) and 8% (Brazil) of its GDP on healthcare. Although healthcare expenditure as a percentage of GDP has been increasing consistently, there has not been a significant rise in the per capita health expenditure because of the high population growth in these countries. The population of China is 1.3 billion while that of India is 1.1 billion. China implemented the ‘one child policy’ in 1979 which reduced the birth rate in the country while the Indian population continues to grow. In fact, India is poised to become the most populous country in the world, surpassing China by 2030. In respect to Brazil, this continues to be the largest and the most populous country in South America with a population base of 190 million.

The healthcare services and infrastructure facilities in these countries are inadequate to take care of the growing needs of this huge population. This makes the healthcare delivery market in these emerging economies an attractive opportunity for investors.

Rise in Lifestyle Related Diseases
In the emerging economies, with the availability of greater disposable income, more and more people are enjoying a high standard of living, are more stressed out and are also leading a sedentary lifestyle. These factors have given rise to lifestyle related diseases such as hypertension, cardiovascular diseases and diabetes. In fact, cardiovascular disease is one of the leading causes of death in both urban and rural areas of China. It is estimated that there will be 21.3 million more cardiovascular events leading to 7.7 million more deaths between 2010 and 2030 alone.
Chronic diseases such as diabetes, cardiovascular diseases and cancer account for about 50% of all deaths in India. It is already the diabetic capital of the world and will have nearly 30 million diabetics by 2020. In Brazil, the situation is very similar with an increasing prevalence of lifestyle related diseases. Circulatory diseases happen to be of the top three causes of death in Brazil and these diseases account for nearly 50% of the deaths in the population age group of above 60 years.
This disease burden demands the expansion of the healthcare delivery system in these economies. The governments` in these economies are already taking steps in that direction and are also encouraging the private sector to invest.

For more information kindly visit : http://www.bharatbook.com/detail.asp?id=146131&rt=The-Healthcare-System-and-Deli                

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