GLP-1 Weight-Loss Drugs Could Boost US Economy by 1%, Goldman Sachs Predicts

Goldman Sachs predicts that the US economy could experience a significant surge in growth if more Americans start taking GLP-1 weight-loss drugs. According to a recent analysis by the investment bank, if 60 million Americans were to take GLP-1 drugs by 2028, the US GDP could potentially increase by an extra 1%.

Jan Hatzius, the chief economist at Goldman Sachs, highlighted the economic impact of poor health on the labor force and overall economic growth. Health-related issues, particularly obesity, can lead to serious health complications such as heart attacks, strokes, and diabetes, which in turn can limit labor supply and hinder economic productivity.

GLP-1 drugs like Ozempic and Wegovy have shown promising results in improving patient health outcomes, with some users experiencing significant weight loss of up to 20%. A recent study even found that patients taking Wegovy for weight loss reduced their risk of heart attacks, strokes, and cardiovascular death by 20%.

With the obesity rate in the US hovering around 40%, the potential for tens of millions of Americans to be prescribed GLP-1 drugs in the coming years is significant. However, the outcome of clinical trials and insurance coverage will play a crucial role in determining the widespread adoption of these drugs.

Hatzius also pointed out that increased usage of GLP-1 drugs and lower obesity rates could have spillover effects on the broader economy, including increased productivity. Academic studies have shown that obese individuals are less likely to work and are less productive when they do work, leading to a negative impact on overall output.

Overall, the potential for improved health outcomes and increased productivity resulting from the widespread adoption of GLP-1 drugs could lead to GDP growth exceeding current trends by 0.6% to 3.2%. Hatzius emphasized that advancements in health could have a significant impact on the economy, potentially raising the level of US GDP by 1% if health progress surpasses current trends by a decade.

As the US continues to grapple with health-related challenges, the potential economic benefits of innovative healthcare solutions like GLP-1 drugs could play a crucial role in driving future growth and prosperity.