GBI Research

The Healthcare System and Delivery Network in Emerging Economies (China, India and Brazil)

High Economic and Population Growth Driving the Healthcare Delivery Market

 

London, England -- (SBWIRE) -- 07/23/2010 -- 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.

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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.

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The demographics of China, India and Brazil have undergone some fundamental changes such as the emergence of the ’middle class’. This middle class population has a high personal disposable income presenting it with greater purchasing power. For example, India’s middle class population was estimated at 300 million in 2009, representing 30% of the population and spreading across 5,000 towns and cities. Further, India has 10 of the 30 fastest-growing urban areas in the world and, based on current trends, a massive 700 million people will move to the cities by 2050. This will create significant demands for healthcare infrastructure and quality health services in India. In China, with the increase in disposable income, an increasing proportion of the middle class population is opting for private healthcare services offering better quality services. With about 190 million people, Brazil too has a fast emerging middle class population with over 30 million Brazilians joining the country’s middle class population between 2003 and 2009. The emergence of this new middle class population with greater income and access to credit offers abundant potential for the healthcare system and delivery network in the country.

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