February 17, 2026 – Leaders around the world face a defining choice about the future of health. They can continue on today’s path—where people live longer but spend more years in poor health, driving healthcare costs up and straining public finances and health systems —or they can chart a course toward healthier, longer lives and stronger economic performance.
A new report from the McKinsey Health Institute (MHI), The health of nations: Stronger health, stronger economies, finds that investing differently and more strategically in health could unlock up to $12.5 trillion in additional global economic output each year by 2050 and reclaim nearly a decade of healthy life. The gains would be driven largely by higher labor-force participation and improved productivity due to better health.
Without reform, however, aging populations and the growing burden of chronic disease will intensify pressure on health systems and public finances. On current trends, the average person is projected to spend around three additional years in poor health by 2050, raising costs and constraining growth.
But this outcome is not inevitable. The report outlines how the opportunity can be realized—by making prevention more investable, improving efficiency across care delivery, and aligning action across sectors. This approach focuses on strengthening the system as a whole, while supporting healthier populations and more resilient economies.
“Health systems are under real and growing strain,” said Matt Wilson, senior partner and affiliated leader at the McKinsey Health Institute. “This research shows that leaders have a meaningful opportunity to redesign systems around higher-value interventions that have outsized impact, leading to longer, healthier lives."
The report identifies prevention as one of the highest-return investments available to governments today. Nearly two-thirds of avoidable disease burden can be addressed through proven, cost-effective preventive and early interventions, yet most health budgets allocate only 2 percent to prevention. Rebalancing toward prevention and primary care can deliver substantial health gains while generating strong economic returns, driven by higher labor-force participation, improved productivity, and reduced caregiving burdens.
“Prevention is not just a health priority—it is a shared economic strategy,” said Pooja Kumar, senior partner and global leader at the McKinsey Health Institute. “When governments, businesses, and communities invest earlier and more effectively in health, they create the conditions for stronger growth, a more productive workforce, and more resilient societies."
Investing in the health of populations delivers returns that extend far beyond the health sector. Healthier people are more likely to succeed in school, participate in the workforce, and contribute to long-term economic growth. That progress then reinforces healthier lives—creating a virtuous cycle in which multisector action drives broader social and economic resilience. Achieving this shift will require alignment across government leaders, businesses, and communities—not action by the health sector alone. The choices leaders make now will shape both population health and economic performance for decades to come.
Read the full report.