- Leading economist Jan Hatzius said the drugs could help boost the economy
- Health issues keep people out of the workforce and inhibits growth, he said
- Weight loss drugs including Ozempic and Wegovy have surged in popularity
More people taking weight loss drugs could make the economy grow faster, according to a leading Goldman Sachs analyst.
If 60 million Americans took GLP-1 drugs – which include Ozempic – by 2028, US GDP could grow by as much as 1 percent, Jan Hatzius, the chief economist at the bank wrote in a note earlier this year.
Slimmed-down workers will be more efficient and take less sick days due to obesity-related illnesses.
Hatzius said that health issues including obesity keep people out of the work force, which then inhibits economic growth, Business Insider reported.
Medications including Ozempic and Wegovy have skyrocketed in popularity in recent months.
Originally developed to treat treat type 2 diabetes, Goldman Sachs predicted up to 70 million more Americans could begin using the drugs in the next four years – significantly boosting productivity.
Medications including Ozempic and Wegovy have skyrocketed in popularity in recent months
‘Combining current losses in hours worked and labor force participation from sickness and disability, early deaths, and informal caregiving, we estimate that GDP would potentially be over 10 percent higher if poor health outcomes did not limit labor supply in the US,’ Hatzius said.
He said that the main reason Goldman Sachs sees a meaningful upside from healthcare innovation is that poor health imposes ‘significant economic costs.’
More than a third of Americans are overweight and more than 42 percent are obese, according to Government statistics.
GLP-1 drugs from companies Novo Nordisk and Eli Lilly are sold under the brand names Ozempic and Mounjaro to treat type 2 diabetes.
Wegovy, meanwhile, has been licensed specifically to treat obesity.
If GLP-1 usage increases and ‘results in lower obesity rates, we see scope for significant spillovers to the broader economy,’ Hatzius said.
The report noted that ‘academic studies find that obese individuals are both less likely to work and less productive when they do.’
Goldman Sachs predicted that if 30 million users started taking the drugs in the next four years, it could increase US gross domestic product (GDP) by 0.4 percent – rising to 1 percent with an added 60 million users.
The US economy stood at around $28 trillion in the last quarter of last year, CNN reported, so that could mean weight loss drugs could boost the economy by around a trillion dollars by 2028.
Health issues keep people out of the workforce which inhibits economic growth, said Goldman Sachs chief economist Jan Hatzius
GLP-1 drugs have become so popular that some pharmaceutical companies have been forced to beef up their supplies in order to keep up with soaring demand.
Novo Nordisk and Eli Lilly have invested billions of dollars in an attempt to ramp up supply.
It comes as new evidence emerged earlier this month that semaglutide – the key ingredient in both Ozempic and Wegovy – might also reduce the chances of heart disease.
A study, led by researchers from University College London, found that the drug could reduce the chance of heart disease in some patients by as much as 20 percent – even if patients do not necessarily lose weight on the drug.
